Goldman Sachs profits decline by 40%

20 October 2010

Goldman Sachs has reported a fall in its profits of 40 per cent for the latest quarter when compared with the same three-month period during last year.

Figures from the bank showed that net income reached $1.9 billion or $2.98 per share, a figure which was lower than the $3.19 billion or $5.25 per share seen between July and September in 2009.

Net revenue fell by 28 per cent to $8.9 billion year-on-year with the impact being particularly felt in the trading division, which reported a fall of 36 per cent to $6.38 billion.

However, the investment bank unit posted net revenues of $1.12 billion, a figure which was 24 per cent higher than the same period last year and a 22 per cent increase on results for the second quarter of 2010.

Lloyd Blankfein, chairman and chief executive officer, said: “Our third quarter results reflect solid performances across our business.

“While economic conditions continue to be challenging in a number of important markets, our focus is on helping our clients achieve their goals."

Further findings from the bank revealed it had set aside $3.83 billion for wages and benefit expenses during the third quarter of 2010.

The total figure for the first nine months of the year stands at $13.12 billion.

By Jim Ottewill

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