Goldman Sachs
reported higher-than-expected quarterly earnings because of aggressive
cost-cutting and strong investment banking and trading revenues, and the
Wall Street Goldman Sachs
earned $2.1 billion, or $3.92 per share. In the year-ago period, which
was generally stronger for investment banks' trading and banking
activity, it earned $4.38 per share, excluding a one-time cost for
buying back preferred stock.
. Revenue more than doubled in debt underwriting and fixed-income, currency and commodities trading.
Analysts had predicted $3.55 per share,.
Goldman said it would raise its quarterly dividend to 46 cents per share from 35 cents.
Revenue was down across most of Goldman's businesses except for financial advisory and equities client execution.
But
bond-market businesses were at good position compared to the 2011 fourth
quarter, when markets were still reeling from the European debt crisis.. Revenue more than doubled in debt underwriting and fixed-income, currency and commodities trading.
"Because
client activity remains relatively low in certain areas, especially in
parts of Investment Banking, we believe that our mix of businesses gives
the firm significant room for revenue growth as economic and market
conditions continue to improve," Chief Executive Lloyd Blankfein said in
a statement.
Goldman
also made further cuts to staffing and expenses in what is expected to
be the final stretch of an aggressive cost-cutting program that began
during the second half of 2011.
The
bank set aside $4.4 billion for compensation and benefits during the
first quarter, down 16 percent from a year earlier. It also reduced its
workforce by 900 employees, or 3 percent.
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