Goldman Sachs Reports Lower Profits
Goldman Sachs Group Inc. (NYSE: GS) has reported its results for the fiscal fourth quarter of the year. The company reported that its trading revenue decreased 53 percent due to the decline in trading revenue. The company stated that its Bond trading revenue decreased 39 percent in comparison to the third quarter. The company also said that its profitability also declined due to rising US Treasury yields.
* Goldman Sachs has reported its quarterly net income at $2.23 billion.
* Goldman Sachs’ per share net income stood at $3.79.
Goldman Sachs has said that it would be paying out 40 percent of its annual revenue in the from of benefits and compensation. The company’s compensation per employee has dropped 14 percent to $431,000. The company also said that its quarterly net income figure is after the payment of preferred stock dividends. The company also reported 10 percent decline in net revenue. The company’s net revenue for the quarter stood at $8.64 billion. The company’s profit per share stood at $4.11. This figure is after excluding onetime items. The consensus estimates for the profit per share were pegged at $3.76. The company was expected to post its revenue at $9 billion.
The company chief executive officer has said that the bank is seeing signs of growth and more economic activity in 2011. Goldman Sachs emerged as the top merger and acquisitions adviser, although its investment banking revenue fell 10 percent in comparison to the corresponding quarter of the last year. The company also reported that its VaR or value at risk is at $120 million. This figure has been calculated for a day of trading with a 95 percent confidence level. This figure is 34 percent lower than the last year. It is also 1 percent less than the previous quarter.
Goldman Sachs also reported fall in its annual profit, which stood at $7.71 billion or $13.18 per share. The company had reported $12.19 billion in profit for the year 2009. This figure is after the payment of preferred stock dividend. The company also reported decline in net revenue for the year. The annual revenue stood at $39.16 billion, down from $45.17 billion it had reported a year earlier.
The company said that its pay and benefits amounted to 39.3 percent of its revenue. In 2009, the percentage stood at 35.8 percent. However, this figure is still 6 percent less than the average for the last decade.
