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Goldman Sachs profits plunge while Citigroup prospers | Goldman Sachs profits plunge while Citigroup prospers |
(35 minutes later) | |
US banking giant Goldman Sachs has reported a sharp fall in profits as trading activity slowed owing to concerns about global economic growth. | US banking giant Goldman Sachs has reported a sharp fall in profits as trading activity slowed owing to concerns about global economic growth. |
Net profits for the three months to 30 September were $1.43bn (£927m), down more than a third on a year earlier. Revenue fell almost 20% to $6.9bn. | Net profits for the three months to 30 September were $1.43bn (£927m), down more than a third on a year earlier. Revenue fell almost 20% to $6.9bn. |
The results contrasted sharply with those of rival Citigroup, which posted a 50% jump in profits, to $4.29bn. | |
The bank said it was able to offset a fall in revenue by cutting costs. | The bank said it was able to offset a fall in revenue by cutting costs. |
Goldman's investment banking division saw revenues increase, but other divisions, particularly market making and bond trading, saw revenues drop. | Goldman's investment banking division saw revenues increase, but other divisions, particularly market making and bond trading, saw revenues drop. |
"We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth," said the bank's chief executive, Lloyd Blankfein. | "We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth," said the bank's chief executive, Lloyd Blankfein. |
Earlier this week, other big US banks also reported a drop-off in trading during the quarter. | Earlier this week, other big US banks also reported a drop-off in trading during the quarter. |
US stock markets fell sharply in August, sparked by fears of a slowdown in the Chinese economy. | US stock markets fell sharply in August, sparked by fears of a slowdown in the Chinese economy. |
Revenues at Citi fell by 5% to $18.69bn, but the bank was able to cut costs dramatically. | Revenues at Citi fell by 5% to $18.69bn, but the bank was able to cut costs dramatically. |
"Despite revenue headwinds, we once again proved our ability to manage our risk, our expenses and our capital," said chief executive Michael Corbat. | "Despite revenue headwinds, we once again proved our ability to manage our risk, our expenses and our capital," said chief executive Michael Corbat. |
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