Goldman Sachs sees profits fall by over half

20 January 2011

Goldman Sachs saw profits fall by 52 per cent in the fourth quarter of 2010 when compared with figures from the same period the previous year.

Financial statistics published by the investment bank showed it recorded profit of $2.39 billion in the three month period when compared with $4.95 billion the previous year.

Profits for the total year dropped by 39 per cent as they fell from the $45.2 billion seen during 2009 to $39.2 billion in 2010.

Lloyd Blankfein, chairman and chief executive officer at Goldman, said: “Market and economic conditions for much of 2010 were difficult, but the firm’s performance benefited from the strength of our global client franchise and the focus and commitment of our people.

“Looking ahead, we are seeing signs of growth and more economic activity and we are well-positioned to help our clients expand their businesses, manage their risks and invest in the future.”

Further figures from Goldman showed that compensation and benefits accounted for $15.38 billion in 2010.

The sum was five per cent lower than the $16.19 billion set aside for the same costs during the previous year.

Goldman paid a record fine of $550 million to the Securities and Exchange Commission in 2010 to settle allegations that it had misled investors over the ABACUS investment product.

By Jim Ottewill

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