...A. Overview: Disappointing qtr. 1. Challenging business mix. a. 2. Revenues $10.6b. 3. Net earnings $1.3b. 4. EPS $3.32. 5. After nine straight quarters of double-digit returns, 4Q performance was certainly outlier. 6. Results were impacted by several near-term challenges, given difficult operating environment. On revenue, underwriting volumes remained extremely muted, despite green shoots appeared at 3Q-end. a. b. Equity activity levels dropped after busy and volatile year for many clients. Equity investment portfolio saw continued headwinds. i. c. Saw higher loan loss provision and expenses. i. Compensation expenses, down 15% for 2022. ii. Expenses rose modestly QoverQ. 7. Strives to maintain pay-for-performance culture. a. With revenues down, compensation was lower. b. Operates in talent-driven business. i. Co. must continue to invest in its people whose dedication is critical to GS' world-class franchise. B. Strategic Rationale: Last July, first spoke about challenging operating environment...
