Tuesday, July 14, 2009

Goldman Sachs 2Q Profit Rises 65%

. Tuesday, July 14, 2009

By stockOzone team

Goldman Sachs Group Inc. reported Tuesday a second-quarter profit that jumped 65% as the investment powerhouse generated nearly $750 million in revenue from equity underwriting, helping battered financial-services firms sell stock to meet new government capital requirements.

The quarterly performance from equity underwriting was a company record, and surpassed even the heady days of the Internet bubble and the previous benchmark for such fees set in 2000.

Goldman also profited handsomely from its role as an intermediary, and sometimes a purchaser itself, for assets that troubled firms needed to sell quickly during the ongoing economic and market crises.

"Our role as an intermediary focused on making markets for buyers and sellers helped drive our performance. We were also active as an underwriter of many significant debt and equity offerings for clients," Chairman and Chief Executive Lloyd Blankfein said in a press release.

Goldman said that overall, net income rose to $3.44 billion, or $4.93 a share, in the latest three months, up from $2.05 billion, or $4.58 a share, earned a year ago, with

Goldman said equity underwriting produced record quarterly net revenues of $736 million.

Excluding a payment under the government's Troubled Asset Relief Program, Goldman would have earned $5.71 a share for the latest quarter.

Analysts polled by Thomson Reuters had expected the company to post earnings, on average, $3.54 a share in the quarter.

Goldman's net revenues reached $13.76 billion in the second quarter, compared to $9.42 billion last year.

Analysts had expected Goldman to report revenue of $10.66 billion.

Goldman switched from a fiscal reporting schedule to a calendar schedule last year. This year's second quarter ended on June 26, while the year ago data is for the period ended May 31 2008.

The company's shares moved fractionally higher in morning trading, topping the $150 mark.

Disclosure: Author does not own any of the stocks discussed here.

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