US banking giants, including Goldman Sachs, forecast to announce revenue slide next week

 
Hayley Kirton
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Analysts are predicting a more than 10 per cent fall in revenues for Goldman Sachs (Source: Getty)

US earnings season might be about to prove that not all that glitters is Goldman, as the investment banking titan is predicted to announce a double digit slide in full-year revenues on Wednesday.

Analysts have also forecast a slump in revenues for Morgan Stanley, which reports on Tuesday, and Citigroup, which reports on Wednesday.

According to a consensus of analysts by Yahoo Finance, Goldman Sachs is predicted to announce revenues of $30.3bn (£24.9bn) for 2016, down 10.3 per cent from $33.8bn. Earnings per share for the lender are predicted to rise to $15.81, up from $12.14 last year when penalties for mortgage-backed mis-selling swiped a chunk of the bank's bottom line.

Read more: Wells Fargo's fourth quarter profits missed expectations

A more modest decline is expected from Morgan Stanley, with analysts forecasting revenues for 2016 of $34.1bn, down 1.2 per cent from $34.5bn excluding debt valuation adjustment last year. Earnings per share are expected to increase to $2.76, up from $2.70.

Meanwhile, at Citigroup, the consensus pegs revenues at $70.5bn for 2016, down 7.4 per cent from $76.1bn last year, while earnings per share are expected to nosedive to $4.70, down from $5.35.

The trio are the second batch of banks to report their full-year figures in the US, with JP Morgan, Wells Fargo and Bank of America all revealing their performance numbers last Friday.

In particular, JP Morgan sailed past analysts' expectations, announcing adjusted earnings per share of $1.71 for its fourth quarter, beating forecasts of $1.43.

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