TLDR: Goldman Sachs has reported its worst annual profit in four years due to a slump in its core investment banking unit. The company’s investment banking revenues and mergers and acquisitions strategic advisory revenues were its worst since 2013 and 2020, respectively. This decline in performance is attributed to the interest rate hikes that occurred throughout the year, which dissuaded companies from engaging in strategic activities such as going public or undergoing mergers and acquisitions. Despite these challenges, Goldman Sachs did beat expectations in its quarterly earnings report, with sales and earnings per share surpassing analyst estimates. However, the company’s annual sales and net income were significantly lower than in previous years.