GOLDMAN Sachs is set to record another downbeat set of results tomorrow, a top analyst has warned, with poor profits driven by the weak economic outlook.
Barclays’ Roger Freeman believes the banking giant’s second quarter profits will be down 23 per cent compared with the same quarter of 2011. In a research note Freeman warned profits are likely to come in at $839m (£539m), down from $1.09bn in the same three month period last year.
In part, that is due to slower trading conditions as the sovereign debt crisis intensified and the gains from the flood of cheap cash from the European Central Bank faded.
The decline is expected to be broad-based, Freeman said, with falls predicted from areas including equities, currencies, fixed income and commodities.
City A.M. Reporter