By Marcus Leach

Goldman Sachs have announced that they will cut their bonuses for payments relating to 2011 to $12.2 billion (£7.4 billion).

This marks a 21% decrease in total compensation from 2010's figures.

The bank also said that its quarterly profits had more than halved from the previous year, but still beat analyst forecasts.

“This past year was dominated by global macro-economic concerns which significantly affected our clients’ risk tolerance and willingness to transact,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer.

“While our results declined as a consequence, I am pleased that the firm retained its industry-leading positions across our global client franchise while prudently managing risk, capital and expenses.

"As economies and markets improve — and we see encouraging signs of this — Goldman Sachs is very well positioned to perform for our clients and our shareholders.”

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