Goldman Sachs, seemingly unfazed by any crisis, keeps churning out the profits, earning $3.46 billion, or $5.59 a share, in the first quarter ending March 31, 2010. The bank’s profits beat analysts’ forecast of $4.01 per share, according to Thomson Reuters.
Goldman said Tuesday, April 20, that earnings were up 91% over the same period last year, when it earned $1.81 billion, or $3.39 a share. Revenues increased 36%, to $12.78 billion, up from $9.42 billion in the quarter a year ago.
Lloyd Blankfein, chief executive at Goldman, said in a statement that the results reflected “more signs of growth across the economy and the strength of our client franchise.”
The bank’s powerful trading operations helped lead the way, with revenue jumping 43%, to $10.25 billion, in the quarter. Fixed-income trading had revenue of $7.39 billion, a 13% increase from the quarter a year ago. Equities trading had revenues of $2.35 billion, an 18% increase.
The allegations of securities fraud were brought by the Securities and Exchange Commission (SEC) on April 16.
Owen Ireland, analyst at ODL Securities in London, told Reuters, “Whilst there could be a PR backlash following the recent allegations, what can’t be denied is the ability of Goldman Sachs to produce stellar results. They have simply reiterated that they are a financial powerhouse.”
Read the full version of Goldman Sachs’ earnings report.
Read an exclusive interview with SEC Chairman Mary Shapiro from the archives of InvestmentAdvisor.com.