Goldman Sachs posts 70% fall in profit

Wall Street banking giant, Goldman Sachs, has posted a 70% decline in third-quarter earnings. The fall is the largest since the company went public in 1999.

Shares in the investment bank lost 11.45% following the news.

Goldman has added to the chaos on Wall Street after Lehman Brothers filed for bankruptcy yesterday.

The group revealed net income of $845 million (£473 million), down from $2.85 billion compared with the previous year, while net revenue fell to $6.04 billion from $12.3 billion.

Despite the poor performance, the results exceeded analysts’ expectations and the bank has evaded the huge losses that brought down Lehman Brothers.

Goldman’s chief executive, Lloyd Blankfein, said it had endured a challenging quarter and had experienced a noticeable fall in client activity and declining asset valuations.

However, Mr Blankfein said it is well placed to meet the needs of its clients and identify and act on market opportunities.

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