Goldman Sachs result exceed estimates

15 July 2009

Goldman Sachs has beaten analyst estimates by posting a 33 per cent rise in earnings for the second quarter.

The investment bank revealed a net income for shareholders of $2.7 billion for the three-month period - up from the $2.05 billion it reported during the quarter to May 30th 2008 when the firm was operating under a different reporting schedule.

This is the equivalent of $4.93 per share, higher than the average of $3.49 that was predicted by analysts in a poll conducted by Reuters.

It also stated that it has set aside $6.65 billion for employee bonuses, which, according to the BBC, equates to around $226,000 per employee.

Lloyd Blankfein, chief executive of Goldman Sachs, said that the strong performance "reflected the combination of improving financial market conditions and a deep and diverse client franchise".

But he warned that the broader economy is still facing "challenges", adding that the financial markets are in a "fragile" state.

Shares in the bank were up to $149.66 at the close of trading on Wall Street yesterday.

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