Goldman Sachs Reports Net Gains
New York-based financial services firm Goldman Sachs Group Inc. announced a 79% increase in fiscal third-quarter net income as a result of record revenue at many of its segments, including the firm's dominant bond, currencies and commodities franchise.
Ending with the third quarter, Goldman posted net income of $2.85 billion, or $6.13 a share, compared with $1.59 billion, or $3.26 a share, a year earlier. Net revenue surged 63% to $12.33 billion.
The firm's shares rose in pre-market trading to $209 from the close Wednesday at $205.50.
Bear Stearns Cos., however, posted a 61% drop in fiscal third-quarter net income on big hedge-fund losses that helped fan the credit-market woes.
Goldman's return on equity, a key profit measure indicating how efficiently it reinvests earnings, rose to 36.6% from 31.6%.
"Given the difficult environment of the third quarter, many of our businesses were challenged," said Chairman and Chief Executive Lloyd C. Blankfein. "But overall, the quality of our franchise produced strong results as clients to look to us for advice and execution."
Published on September 20, 2007
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