<p>Goldman Sachs reported a steep decline in fourth-quarter earnings on Tuesday on much lower merger activity in results that missed analyst expectations and weighed on shares.</p>.<p>The big investment bank pointed to a "significant decline" in completed mergers and acquisitions as fewer big companies bought rivals and the number of initial public offerings fell sharply compared with recent years.</p>.<p>Goldman Sachs also cited a fall in equity and debt underwriting as a factor in the profit decline.</p>.<p>Net income was $1.2 billion, down 69 percent following a 16 percent fall in revenues to $10.6 billion.</p>.<p>Goldman's profit drop comes on the heels of a trove of mixed results last week from other financial giants, with some large banks pointing to a "mild recession" as a likely scenario.</p>.<p>Goldman's asset and wealth management business was dented by lower revenues in equity and debt investments.</p>.<p>Other headwinds were due to much higher provisions tied to its consumer credit card business, as well as elevated expenses for employee compensation.</p>.<p>In October, Goldman announced it was streamlining businesses to three operating segments from four, a move that reorganizes its "Marcus" consumer business, which had hit obstacles.</p>.<p>Chief Executive David Solomon pointed to a "challenging economic backdrop," saying the firm's "focus is realizing the benefits of our strategic realignment, which will strengthen our core businesses, scale our growth platforms and improve efficiency."</p>.<p>Shares fell 2.5 percent to $364.67 in pre-market trading.</p>
<p>Goldman Sachs reported a steep decline in fourth-quarter earnings on Tuesday on much lower merger activity in results that missed analyst expectations and weighed on shares.</p>.<p>The big investment bank pointed to a "significant decline" in completed mergers and acquisitions as fewer big companies bought rivals and the number of initial public offerings fell sharply compared with recent years.</p>.<p>Goldman Sachs also cited a fall in equity and debt underwriting as a factor in the profit decline.</p>.<p>Net income was $1.2 billion, down 69 percent following a 16 percent fall in revenues to $10.6 billion.</p>.<p>Goldman's profit drop comes on the heels of a trove of mixed results last week from other financial giants, with some large banks pointing to a "mild recession" as a likely scenario.</p>.<p>Goldman's asset and wealth management business was dented by lower revenues in equity and debt investments.</p>.<p>Other headwinds were due to much higher provisions tied to its consumer credit card business, as well as elevated expenses for employee compensation.</p>.<p>In October, Goldman announced it was streamlining businesses to three operating segments from four, a move that reorganizes its "Marcus" consumer business, which had hit obstacles.</p>.<p>Chief Executive David Solomon pointed to a "challenging economic backdrop," saying the firm's "focus is realizing the benefits of our strategic realignment, which will strengthen our core businesses, scale our growth platforms and improve efficiency."</p>.<p>Shares fell 2.5 percent to $364.67 in pre-market trading.</p>