Goldman Sachs Group Inc reported a 49per cent fall in quarterly profit on Wednesday, as the bank put aside nearly US$1 billion to meet future ...
REUTERS: Goldman Sachs Group Inc's quarterly profit nearly halved, as it set aside more money to cover for corporate loans expected to go bust in the coming months and booked heavy losses on its debt and equity investments.
Under Solomon, Goldman has been attempting to reduce its reliance on its flagship trading business and build out its consumer bank, although trading made a comeback in the quarter on that back wild swings in financial markets and accounted for nearly 60per cent of overall revenue. The bank's net earnings applicable to common shareholders fell to US$1.12 billion in the first quarter ended March 31 from US$2.18 billion a year earlier. Earnings per share tumbled to US$3.11 from US$5.71.
The strong performance in trading, however, was offset by weakness in its asset management reporting line, where it booked losses of US$868 million from lending and debt investments. Goldman also saw a 10per cent rise in operating expenses from a year earlier, primarily due to significantly higher expenses related to brokerage, clearing, exchange and distribution fees.
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