Goldman Sachs Posts Deeper-than-expected Q3 Loss

18 October, 2011

Goldman Sachs Group Inc posted a wider-than-expected loss of $428 million for the third quarter, only its second quarterly loss as a public company, hurt by sharp declines in the value of investment securities and customer trading assets.

Chief Executive Lloyd Blankfein cited difficult market conditions and a lack of confidence among investors and corporate clients for the poor results.

“Our results were significantly impacted by the environment and we were disappointed to record a loss in the quarter,” Blankfein said.

Shares of the largest US investment bank by assets were down 2 per cent in premarket trading.

Goldman’s loss-driver was its Investing & Lending division, which holds stocks, bonds, loans and private equity assets as long-term investments.

The division reported negative revenue of $2.48 billion as the value of those assets dropped sharply. Goldman’s stock investment in Industrial and Commercial Bank of China Ltd alone generated more than $1 billion of paper losses.

Goldman was also hurt by big declines in bond trading and investment banking revenue.

Its fixed income, currency and commodities client trading business reported $1.73 billion in revenue, a 36 per cent decline from a year earlier. Investment banking revenue dropped 33 per cent to $781 million.

Overall, Goldman’s net revenue totalled $3.6 billion, down 60 per cent from a year earlier and down 51 per cent from the 2011 second quarter.

Its third-quarter loss amounted to 84 cents per share, compared with a profit of $2.98 per share a year earlier. On average, analysts had expected a loss of 16 cents per share.

 


Leave Your Comment
Weak Trading Bites Into Goldman Profits

Weak Trading Bites Into Goldman Profits

Reuters 6 years ago
Goldman Sachs’ anemic second-quarter results on Tuesday rattled investors and cast a pall on its reputation as Wall Street’s trading powerhouse. The biggest U.S. investment...
Goldman To Focus on Securities, PE Biz; Puts Asset Management on Hold

Goldman To Focus on Securities, PE Biz; Puts Asset Management on Hold

Madhav A Chanchani 1 year ago
New York-based financial services major Goldman Sachs is trying to “disproportionately” grow its footprint in India as well as other emerging markets. The investment banking...
Goldman Sachs stumbles as earnings miss expectations

Goldman Sachs stumbles as earnings miss expectations

Reuters 4 months ago
Goldman Sachs Group Inc (GS.N) fell short of earnings expectations on Tuesday due to a drop in quarterly trading revenue, prompting analysts to demand explanations...
No Comments

Goldman Sachs Posts Deeper-than-expected Q3 Loss

Powered by WordPress.com VIP