Popular investment bank Goldman Sachs revealed that it made significantly less money than anticipated in the fourth quarter of 2022, reporting a profit decline of nearly 70 per cent from the same quarter a year earlier.

According to a report by The New York Times, the bank had a terrible fourth quarter of 2022, with its stock falling by more than six per cent.

The disclosure came just one week after Goldman announced 3,200 job cuts, the company’s largest since the 2008 financial crisis. 

The company had also endured significant losses due to its failed foray into consumer banking, where its attempts to appeal to average American savers met with failure.

David Solomon, the CEO of Goldman, told analysts that the bank had made mistakes and overextended itself. 

Mr Solomon warned that more bad news was on the way, including costs associated with recent job cuts.

Since 2019, Goldman has lost over $3 billion on consumer missteps. At the end of the year, Goldman’s consumer-focused unit had $15 billion in loans outstanding.

Goldman announced on Tuesday that it had set aside almost $1 billion to cover potential loan losses, including funds to make up for consumer debts that it has essentially given up trying to collect.