Goldman Sachs exceeds expectations by reporting $1.8bn profit
Investment bank Goldman Sachs has exceeded analysts expectations by announcing a $1.8 billion (£1.2 billion) net profit for the three months ending 27th March.
In the previous quarter, Goldman posted its first quarterly loss since going public in 1999.
The markets are expected to respond positively to the results, which kicks-off some much needed good news to the US banking sector, with some analysts suggesting the worst could be over for financial institutions.
Earlier this month, US bank Wells Fargo stunned investors by announcing it expects to report a record net profit for the first quarter.
Commenting on the results, Lloyd Blankfein, Goldman’s chairman and chief executive, said: “Given the difficult market conditions, we are pleased with this quarter’s performance.”
In the meantime, Goldman Sachs has confirmed plans to raise $5 billion (£3.4 billion) from investors – in a bid to raise funds to repay the $10 billion emergency loan it received from the US Government last autumn.
At the end of last month, the bank’s Tier 1 capital ratio (a measure of a bank’s capital strength) was 16%, compared to 15.6% at the end of December.