Leading global investment bank Goldman Sachs Group Inc GS recently announced a shrinking year-end bonus for traders, although trading revenue is increasing this year.

Goldman’s annual trading turnover is $25 billion, and analysts estimate it will be up 15% year-on-year. However, the company’s overall sales fell 21%.

The bank has said it is currently struggling with a slowdown in its businesses, particularly investment banking and wealth management, Reuters reports.

The slowdown is primarily due to rising interest rates and falling company valuations. Bloomberg has reported that the bank earlier this week informed its global markets executives that it expects a smaller bonus pool in 2022.

Goldman’s return on equity for the first nine months was 12%. However, Bloomberg reports that management is trying to keep the bank from losing ground.

Also read: Goldman Sachs chief predicts recession, warns risk-based companies ‘time to be cautious’

Goldman is already struggling to protect its profitability after recently penetrating its retail banking business, which has been hurt by a global slowdown in other businesses like dealmaking.

“We always tell people that their bonus depends on how they did, how their group did, and ultimately how the company did,” one person with knowledge of the company’s processes told Bloomberg. “This year some of the good money traders need to fund the other parts of the bonus pool.”

Last month, compensation consultant Johnson Associates reported that bankers on Wall Street would likely see their bonuses drop by as much as 20% in 2022. In addition, their underwriting colleagues could see their incentive payments decrease by up to 45%.

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