Goldman quarterly earnings drop 72 per cent

City A.M. Reporter
Goldman Sachs posted a 72 per cent decline in first-quarter profit as it made less money from trading bonds for clients.

The largest US investment bank posted a profit to common shareholders of $908m (£558m), or $1.56 a share, compared with $3.3bn, or $5.59 a share, in the same quarter a year ago.

Results in the latest quarter were also hit by the repurchase of $5bn of preferred shares from Warren Buffett's Berkshire Hathaway. The redemption resulted in a special preferred dividend of $1.64bn. Excluding that charge, the bank would have earned $4.38 a share.

Revenue fell seven per cent.

Goldman Sachs set aside $5.23bn for employee compensation in the quarter, a five per cent decline from the same quarter last year.