Goldman to slash bonus pot as profits tumble 20pc

GOLDMAN Sachs slashed staff pay by 20pc after it revealed profits have dropped.

The investment bank made a £2.1bn profit in the first three months of 2019, down 20pc on a year earlier. The decline was largely driven by a slump in share trading due to quieter markets, it said.

The lender slashed bonuses in a bid to boost profitability, setting aside £2.5bn for its workers, down from £3.1bn in the same period last year.

It meant that the average Goldman employee was in line for £69,219 for the three months, down from £90,985 a year earlier.

The profit fall is a blow for chief executive David Solomon, who took charge in October, particularly as Wall Street rival JP Morgan made a record £7bn in the first quarter. In response, Solomon pledged to focus on new opportunities, including retail banking.

Goldman launched a consumer arm called Marcus in the US in 2016, and brought it to Britain with a top-paying savings account last year.

Fellow US investment bank Citibank posted a 2pc rise in profits to £3.6bn.