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Thursday, October 15, 2009
NEW YORK — Goldman Sachs reported a blockbuster profit of $3.03 billion Thursday, handily beating Wall Street analysts' expectations.However, Goldman couldn't match the high expectations that were set Wednesday by rival JPMorgan Chase's stellar results, which boosted optimism and helped push the Dow Jones industrial average back over the 10,000 level.The slim $101 million net income that it reported didn't take into account the dividends it paid on its preferred stocks and also a debt exchange offer. After accounting for those payments, Citi reported a loss of $3.24 billion for shareholders. Citi's (C) stock is off 29 cents to $4.71.The results are weighing on the broad stock market, as the Dow fell back toward he 10,000 mark.What worried analysts about Goldman's results was a 31% drop in its investment banking revenue after a 47% drop in financial advisory and 15% decline in its underwriting business, compared to the same period of last year."Because the job market, and growth more generally, remain under stress, we continue to be focused on actively helping our clients in order to promote greater economic activity," says Lloyd Blankfein, CEO of Goldman.Citi, which recorded $8 billion in credit losses, indicated more losses in the future. Its loan loss reserves climbed to $36.4 billion, up from $35.9 billion in the prior quarter.