ManagementGoldman Q2 profit surges 65% to $3.44 bn
Investment banking major Goldman Sachs today reported huge profit of $3.44 billion for the second quarter ended June, bolstered by stellar performance in trading operations.
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Goldman Sachs" profit surged 65 per cent to $3.44 billion for the three months ended June 26, 2009. In the year-ago period, the entity had a profit of $2.09 billion.
Goldman Sachs, which recently returned bailout funds worth $10 billion to the Federal government, recorded second-quarter revenues to the tune of $13.76 billion.
The company in a statement said it had revenues worth $9.42 billion in the comparable period. Goldman Sachs received help from the US government to tide over the one of the worst economic recessions in nearly 80 years.
"Net revenues in trading and principal investments were $10.78 billion, 93 per cent higher than the second quarter of 2008 and 51 per cent higher than the first quarter of 2009," the statement said.
Excluding preferred stock dividends of $717 million, profit for the second quarter stood at $2.72 billion.
"While markets remain fragile and we recognise the challenges the broader economy faces, our second quarter results reflected the combination of improving financial market conditions and a deep and diverse client franchise," Goldman Sachs" Chairman and Chief Executive Lloyd C Blankfein said.
"Our role as an intermediary focused on making markets for buyers and sellers helped drive our performance. We were also active as an underwriter of many significant debt and equity offerings for clients," Blankfein noted.
The company shelled out $6.65 billion for compensation and benefits expenses in the second quarter.
However, net revenues from the investment banking segment stood at $1.44 billion, about 15 per cent lower than the second quarter of 2008.
The net revenues from financial advisory services dropped 54 per cent to $368 million against the year-ago period, primarily due to a significant decline in industry-wide completed mergers and acquisitions.
Goldman Sachs would be paying a dividend of 35 cents per common share for stakeholders of record as on August 25, 2009.