Goldman Sachs could unveil low Q3 profit

11 October 2011

Goldman Sachs Group could be about to post its lowest quarterly profit since the onset of the global financial downturn.

The value of shares at the bank has fallen 43 per cent in 2011 and analysts have warned that the third-quarter period has seen a significant decline in investment banking business, such as that regarding bond trading and merger advice, Bloomberg reports.

Such a downward trend for Goldman Sachs - which is headquartered in New York but has offices located across the globe - comes shortly after it reported considerable profits in 2009 and early 2010, when the lender enjoyed a prosperous trading record and made the most of rising markets.

Richard Staite of Atlantic Equities in London - who was one of the experts consulted - said: "You're going to see a big divergence between very poor earnings from pure capital-markets businesses and quite solid performance from the pure retail banks."

The industry figure noted this will be particularly apparent for those that have a mortgage-origination business.

By Tony Aynsley

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