US investment bank Goldman Sachs says its profits for the final quarter of 2010 dropped by 53% from a year earlier due to falling revenue. This dragged down full-year 2010 earnings by 38% compared with 2009.
Goldman posted a fourth-quarter profit of $2.39 billion, giving a profit for the whole year of $8.35 billion.
Profits were slightly above market expectations. Earnings per share were $3.79 in the fourth quarter and $13.18 for the year. Analysts had estimated $3.76 and $13.14, respectively. But revenue results were worse than expected.
Goldman, one of Wall Street's most prestigious banks, said Q4 revenue fell 10% from a year ago, to $8.6 billion, while for the full year revenue was down 13% to $39.2 billion.
Net revenue from bonds, currencies and commodities slid 39% from the third quarter to $1.64 billion, reflecting what Goldman called 'generally low client activity levels'.
'Market and economic conditions for much of 2010 were difficult,' Lloyd Blankfein, Goldman chairman and chief executive, said in a statement. '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,' he added.
