Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 11:37:56 AM CST

Learn about Newser Points »

« Back to the grid | Next story »

Goldman Earnings Hit Record

Posted Dec 18, 07 9:25 AM CST in Business 

(Newser) – Still sitting pretty above the subprime fray, Goldman Sachs trumped estimates today and reported a 2% jump in profits in the fourth quarter, breaking the annual profit record for the fourth straight year. Goldman shorted subprime mortgages, profiting from the disaster that sank competitors, and in the quarter actually boosted its revenue from mortgage securities, Bloomberg reports.

"Goldman took that weakness and turned it to its own advantage,'' one analyst said. Revenue rose 14% to $10.7 billion, and return on investment was a lofty 34.6%. Much of that came from buying and selling companies, a profitable departure from Goldman’s usual adviser role. The results “hardly seem ‘one time’ in nature,” an analyst predicted. And Goldman’s equity trading really beat the market, with revenues climbing 22%.

Source Bloomberg

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Fed Allows Goldman, Morgan to Become Full Banks

    Sep 21, 08 10:11 PM CDT
    Goldman Sachs and Morgan Stanley, the nation's last two major independent investment banks, have gotten permission to become bank holding companies, the Federal Reserve said tonight. A fundamental rearrangement of Wall Street, the move will allow them to create commercial banks, which would bolster their resources, while inviting increased regulation. It reflects the Fed's determination not to let Goldman and Morgan Stanley fail, the New York Times notes. More »

  • Goldman Profit Drops 70%, Still Beats Estimates

    Sep 16, 08 8:37 AM CDT
    Goldman Profit Drops 70%, Still Beats Estimates Amid the financial industry's meltdown, survivor Goldman Sachs reported that third-quarter profit plunged by 70% —the sharpest decline in its history as a public company, but still enough to beat estimates of $1.71 per share. The bank dipped 7% in New York trading, Bloomberg reports, after reporting an income decline of $1.81 per share to $845 million. Year-earlier income was $2.85 billion.
    More »

  • Morgan Stanley Profits Fall 57%

    Jun 18, 08 8:00 AM CDT
    Morgan Stanley Profits Fall 57% Morgan Stanley profits were sliced in half this quarter, the company announced today, as stock slingers failed to offset real estate writedowns. The 57% drop, which brought earnings to $1.03 billion or $0.95 per share, was in line with analyst expectations. CEO John Mack said that thanks to “careful management of our capital, risk and liquidity” the US' second-largest investment bank isn't in danger. More »

  • Goldman Drops 53%, Beats Analysts' Estimates

    Mar 18, 08 7:54 AM CDT
    Goldman Drops 53%, Beats Analysts' Estimates Goldman Sachs today beat analysts' dire predictions even though it reported a 53% drop in first-quarter profits—the worst falloff since 1999—after a $2.1 billion writeoff, reports Bloomberg. Analysts had expected the Wall Street brokerage to see profits drop more than 60%. Goldman said net income was $1.51 billion, down from $3.2 billion a year earlier. More »

  • SocGen Posts Record $4.9B Q4 Loss

    Feb 21, 08 9:54 AM CST
    SocGen Posts Record $4.9B Q4 Loss Societe Generale's annual profits plummeted a whopping 82% after a record $4.9 billion fourth quarter loss fueled by subprime woes and the actions of rogue trader Jerome Kerviel, reports Bloomberg. France’s second-largest bank today said net income was 947 million euros, compared to 5.22 billion euros in 2006. SocGen warned further losses could come in the first quarter. More »

The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs is shown in this June 12, 2007 file photo. The nation's big investment banks and brokerages are on...   (Associated Press)
This undated handout file photograph of Goldman Sachs president and chief operating officer Lloyd Blankfein was released by the Wall Street investment bank, Friday, June 2, 2006. (AP Photo/HO, Goldman...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Tags

subprime mortgages • Goldman Sachs • earnings reports • investment bank


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »