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Goldman’s net up 13%
Bloomberg NewsNEW YORK -- Goldman Sachs Group Inc. said fiscal second-quarter earnings rose 13 percent, as gains in investment banking and stock trading helped offset a loss from its portfolio of about $3 billion of fledgling companies.
The fifth-biggest securities firm said yesterday that profit from operations in the three months ended May 31 rose to $755 million, or $1.48 a share, from $624 million, or $1.30 a share.
The investing loss, which the firm had warned would curb profits, cut revenue by $321 million, reducing earnings by 19 cents a share. Goldman weathered the loss thanks to a 58 percent surge in investment banking revenue to $1.59 billion. Revenue from arranging stock and bond sales rose 79 percent to $882 million. Overall, net revenue rose 20 percent to $4.15 billion.
Goldman shares, which fell $2.62 yesterday, dropped another $2.37 to $86.62 today on the New York Stock Exchange. Possibly weighing on the stock are fears that the market may soon become flooded with Goldman shares a year after the 131-year-old company's initial public offering.
After a year ban, Goldman employees were free to trade some s6 million shares starting today. Hawaii's Kamehameha Schools, the largest outside shareholder in Goldman Sachs with about 22 million shares or 5 percent of the firm, and Japan's Sumitomo Bank also have 14 million shares that could wind up in the market.
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