Goldman surprises analysts with strong Q2 performance
Investment bank Goldman Sachs has again exceeded analysts expectations by reporting a net profit of $3.4 billion (£2.1 billion) for the April-June period of this year.
The bank, which had to be bailed out by the US Government, is currently under fire for plans to pay out staff bonuses averaging $226,000 per employee, totalling $6.65 billion.
The return of excessive bonuses continue to outrage the public after bankers are being blamed for the global recession.
Global banks including Morgan Stanley, Deutsche Bank and Barclays also look set to pay bumper bonuses this year.
Meanwhile, Goldman raised over $5 billion through the issue of new shares in April, saying it would use the funds to pay back its loan to the US Treasury.
The bank’s participation in the US Troubled Asset Relief Program (Tarp) left it with Government debts of $10 billion in total.
Meanwhile, the bank reported record net revenues of $13.8 billion – roughly 47% higher than it generated in the preceding quarter.
Six months ago, the bank announced its first quarterly loss since going public a decade ago but then surprised analysts by reporting a $1.8 billion profit for the first quarter of 2009, despite the financial maelstrom.
In September last year, Goldman Sachs along with Morgan Stanley, changed status and received regulatory approval to convert themselves into traditional bank holding companies.
Finally, shares in the bank have risen around 75% this year but are still well off their peak.