Goldman shares fall on Q4 profits announcement

| January 19, 2011 | 0 Comments
Goldman shares fall on Q4 profits announcement

US banking giant Goldman Sachs has today reported a $2.39 billion (£1.49 billion) profit for the fourth quarter, 53% lower compared with a year ago.

However, the figures were roughly in line with expectations but shares still fell 3.1% to $169.22 in pre-market trading.

The fourth quarter figures come at the end of a difficult year for the bank. Revenue at the company’s fixed income group was down 48% on a year earlier and follows a weak third quarter for the group.

The investment bank attributed the poor performance to “low client activity levels”.

However, the bank’s chief executive, Lloyd Blankfein, is optimistic and said the bank is “seeing signs of growth and more economic activity” following “difficult” conditions for much of 2010.

The figures come shortly after Citigroup reported a $1.3 billion (£811 million) for the fourth quarter of 2010, against a loss of $7.6 billion loss a year earlier.

Meanwhile, revenue surged to $18.4 billion, from $5.4 billion in the same period a year ago but were 11% lower compared with the third quarter.

However, earnings and revenue missed Wall Street expectations and shares in the bank fell 4%.

JPMorgan, meanwhile, recently announced income surged 47% in the fourth quarter.

Fourth-quarter profit increased to $4.8 billion, or $1.12 a share, from $3.3 billion, or 74 cents a share, compared with the year ago period.

Wells Fargo & Co. and Bank of America Corp. are scheduled to report their fourth quarter earnings later this week.

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