Tags: goldman | sachs | loss

Goldman Sachs Posts Bigger-Than-Expected Loss

Tuesday, 18 Oct 2011 07:55 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
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 U.S. investment bank by assets were down 2 percent 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 percent decline from a year earlier. Investment banking revenue dropped 33 percent to $781 million.

Overall, Goldman's net revenue totaled $3.6 billion, down 60 percent from a year earlier and down 51 percent 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.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved