Goldman Sachs Group has reported a nearly 13% drop in Q4 2021 profit as operating expenses soared amid weak trading activity.

The investment bank’s net earnings totalled $3.94bn in the three-month period to 31 December 2021, compared to $4.36bn recorded in the same quarter a year ago.

Diluted earnings per common share (EPS) for Q4 2021 was $10.81, down from $12.08 in the fourth quarter of 2020.

Quarterly net revenues, however, grew 8% on a year-on-year basis to $12.64bn.

Net interest income also jumped 27% to $1.79bn from $1.41bn.

Goldman Sachs’ investment banking unit generated net revenues of $3.8bn in the fourth quarter of 2021. The figure represents an increase of 45% compared to the corresponding quarter a year before.

The asset management arm reported a 10% drop in net revenues to $2.89bn in the same period, while the consumer and wealth management unit recorded a 19% growth in net revenues to $1.97bn.

Provision for Credit Losses totalled $344m in the quarter, compared to $293m in the prior year period.

The bank’s operating expenses soared by 23% to $7.27bn in the fourth quarter of 2021.

Goldman Sachs chairman and CEO David M. Solomon said: “2021 was a record year for Goldman Sachs. The firm’s extraordinary performance is a testament to the strength of our client franchise and people.

“Moving forward, our leadership team remains committed to growing Goldman Sachs, diversifying our businesses and delivering strong returns for shareholders.”

In October last year, the Wall Street giant reported a 60% increase in Q3 profit.