Thursday, Dec 01, 2022

Goldman Sachs posts huge Q3 loss

Goldman Sachs posted a wider-than-expected loss of $428 mn for the third quarter.

Goldman Sachs Group Inc posted a wider-than-expected loss of $428 million for the third quarter,only its second quarterly loss as a public company,hurt by sharp declines in the value of investment securities and customer trading assets.

Chief Executive Lloyd Blankfein cited difficult market conditions and a lack of confidence among investors and corporate clients for the poor results.

Our results were significantly impacted by the environment and we were disappointed to record a loss in the quarter,Blankfein said.

Shares of the largest U.S. investment bank by assets were down 2 percent in premarket trading.

Subscriber Only Stories
JK Cement’s SPSU Udaipur Launches ‘Golden Batch 2022’ In Collaboration Wi...Premium
Appendicitis in Children- A new lifestyle disorderPremium
Using evidence will create strong foundations for the future of education...Premium
Re-Defining The Tradition In Folk Art: An Art Educator’s PerspectivePremium

Goldman’s loss-driver was its Investing & Lending division,which holds stocks,bonds,loans and private equity assets as long-term investments.

The division reported negative revenue of $2.48 billion as the value of those assets dropped sharply. Goldman’s stock investment in Industrial and Commercial Bank of China Ltd alone generated more than $1 billion of paper losses.

Goldman was also hurt by big declines in bond trading and investment banking revenue.


Its fixed income,currency and commodities client trading business reported $1.73 billion in revenue,a 36 percent decline from a year earlier. Investment banking revenue dropped 33 percent to $781 million.

Overall,Goldman’s net revenue totaled $3.6 billion,down 60 percent from a year earlier and down 51 percent from the 2011 second quarter. Its third-quarter loss amounted to 84 cents per share,compared with a profit of $2.98 per share a year earlier. On average,analysts had expected a loss of 16 cents per share.

First published on: 18-10-2011 at 07:35:13 pm
Next Story

The rise and rise of western covert ops

Latest Comment
Post Comment
Read Comments