This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8149762.stm
The article has changed 3 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Goldman Sachs sees bumper profit | Goldman Sachs sees bumper profit |
(19 minutes later) | |
US bank Goldman Sachs has unveiled a net profit of $3.44bn (£2.1bn) for the April to June period - beating forecasts from analysts. | |
It comes after the bank startled Wall Street by reporting it made $1.8bn in the first three months of the year, despite the financial crisis. | It comes after the bank startled Wall Street by reporting it made $1.8bn in the first three months of the year, despite the financial crisis. |
However Goldman paid $771m in dividends to holders of preferential shares, taking actual profit to $2.7bn. | |
It said it would set aside $6.65bn for pay and bonuses in the quarter. | |
Analysts have predicted that the annual payout for its 28,000 staff would near $18bn. | |
Share rises | Share rises |
The firm has recently paid back $10bn in government aid intended to help it steer through the global turmoil. | |
And it also took a one-off charge of $426m related to the repayment of its government loan under the Troubled Asset Relief Programme (Tarp). | |
Things are very fragile but they manage to make money in all environments, which is what you're supposed to do William SmithSmith Asset Management | |
Six months ago, Goldman saw its first quarterly loss since going public in 1999, after being battered by the economic crisis. | Six months ago, Goldman saw its first quarterly loss since going public in 1999, after being battered by the economic crisis. |
However it said its profit had been buoyed by strength in its trading and underwriting businesses. | However it said its profit had been buoyed by strength in its trading and underwriting businesses. |
Observers say it has capitalised on turmoil in the markets - making bets in the right direction on commodities and volatile currencies as well as shares. | |
"Things are very fragile but they manage to make money in all environments, which is what you're supposed to do," said William Smith, chief executive of Smith Asset Management. | |
"Goldman should be celebrated, not demonized." | |
Its share price, while still well off its highs, has gained about 75% in 2009. | Its share price, while still well off its highs, has gained about 75% in 2009. |
The $3.44bn net profit compares with $2.1bn in the three months to May 2008, when it had a different reporting schedule. |