NEW YORK: Goldman Sachs reported record annual profits in 2021 on Tuesday on robust merger and acquisition activity, but higher spending on employee compensation and other items dented fourth-quarter results.

Annual profits surged 137 percent to $21.2 billion, an all-time high. But fourth-quarter profits fell 13 percent from the year-ago period to $3.8 billion as results were weighed down by elevated spending, including a 31 percent jump in compensation and benefits.

Rival banks last week cited that intensifying competition for labor as an increasing pressure point on results.

Goldman also set aside $182 million for litigation and regulatory costs in the fourth quarter, up from $24 million in the year-ago period. The investment bank again won higher revenues for financial advisory services and corporate lending, offsetting declines in asset management and markets during the period. Annual revenues rose 33 percent in the 2021 to $59.3 billion. Fourth-quarter revenues rose eight percent to $12.6 billion. Shares fell 4.1 percent to $365.49 in pre-market trading.