Goldman Sachs and Citigroup announce results

| October 15, 2009 | 0 Comments
Goldman Sachs and Citigroup announce results

There has been mixed news today across the Atlantic after banking giant Goldman Sachs exceeded analysts expectations while Citigroup posted a quarterly loss.

Goldman Sachs said net earnings for the third quarter were $3.19 billion (£1.96 billion), compared with $845 million in the same period a year ago (prior to the collapse of Lehman Brothers).

However, while the figure was up on quarter three last year, it was actually lower than the $3.44 billion the bank made in the previous quarter.

However, the bank, which has repaid the emergency loan it had received from the US Government in July this year, said there were signs of “improving conditions and evidence of stabilisation” in the global economy.

Chief executive Lloyd C Blankfein comments: “Although the world continues to face serious economic challenges, we are seeing improving conditions and evidence of stabilisation, even growth, across a number of sectors.”

In the meantime, Citigroup reported a third-quarter net loss to shareholders of $3.2 billion, compared with a loss of $2.9 billion in the same period a year ago.

The banking giant, which is currently 34% owned by the US Government, has suffered $8 billion of credit losses and has already posted over $100 billion of write-downs and consumer credit losses since the onset of the credit crunch.

JPMorgan Chase was the first US bank to kick-off the reporting season yesterday and far exceeded analysts expectations by announcing strong quarter three results.

The bank announced a £2.3 billion profit - outperforming the £330 million income it made in the same period a year ago.

The news sent the Dow Jones Industrial Average through the 10,000 barrier yesterday - for the first time in a year.

Bank of America is due to release its results tomorrow.

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