Goldman Sachs Group said today that its first-quarter earnings fell by half after the largest US investment bank recorded steep losses on corporate loans and other assets. However, the results still exceeded expectations that have fallen in recent weeks.
Wall Street's biggest bank by profits and market value said net income fell to $1.51 billion, or $3.23 a share, in the quarter ended Febuary 29, from $3.20 billion, or $6.67, the same time the previous year. Quarterly revenue fell to $8.34 billion from $12.7 billion.
Analysts on average had expected Goldman to earn $2.57 a share in the quarter on $7.3 billion of revenue.
US banks and brokers have been suffering for over a year, as the worst US housing market in decades and a breakdown in debt markets generated some $200 billion of losses.
Bear Stearns, brought to the brink of collapse as its exposure to mortgages prompted an exodus of customers, on Sunday was forced to accept a $2-a-share takeover offer from JPMorgan Chase & Co.
Goldman had been a rare exception as it avoided mortgage woes and reported record 2007 results fueled by trading and investment gains.
But Goldman's stock has plunged 30% this year as investors expected the company's earnings this year to be hurt by the credit crunch.
