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Goldman Sachs Q3 profit drops

Earnings of $2.98 per diluted share compare with $5.25 for Q3 2009.

Goldman Sachs Group has posted net earnings available to common shareholders of $1.74bn, or $2.98 per diluted share, for the third quarter ended 30 September 2010, compared to $3.03bn, or $5.25 per diluted share share, reported for the third quarter of 2009.

Annualized return on average common shareholders' equity (ROE) was 10.3% for the third quarter of 2010 and 11.6% for the first nine months of 2010.

Excluding the impact of the $600m related to the UK bank payroll tax and the $550m related to the SEC settlement in the second quarter of 2010, annualized ROE was 13.2% for the first nine months of 2010.

Net revenues for the third quarter of 2010 declined to $8.90bn from $12.37bn in the same quarter last year.

The company's investment banking revenue jumped 24% to to $1.1bn because of an increase in underwriting debt offerings.

Goldman's bond, currency and commodities trading business registered a 36% dip in revenue compared with the same quarter last year.
Operating expenses for the third quarter of 2010 were $6.09bn, 20% lower than the third quarter of 2009.