Markets

Goldman Sachs profits sink after exceptionally weak quarter

Earnings tumbled by 58 per cent following an investment-banking slump and real estate markdowns

Return on equity, a key measure of profitability, slid to 4 per cent last quarter — the worst among the top US banks

Goldman Sachs profits have plunged following an exceptionally weak quarter for the firm under chief executive David Solomon.

Earnings tumbled by 58 per cent following an investment-banking slump, real estate markdowns and a goodwill writedown on the bank’s ill-fated acquisition on fintech GreenSky. Return on equity, a key measure of profitability, slid to 4 per cent in the quarter — the worst among the top US banks.

With the firm actively tamping down expectations heading ...