US INVESTMENT bank Goldman Sachs said yesterday that net profit fell during the third quarter of this year after lower than expected trading volumes during the summer dragged on earnings.
Goldman reported a net profit of $1.9bn (£1.2bn), or $2.98 per share, for the three months to 30 September, down more than 40 per cent on the previous year’s $3.19bn profit haul, or $5.25 per share.
Net revenues were also down 28 per cent on the previous quarter to $8.9bn, the bank said.
Revenues from the bank’s trading desks were $6.38bn, 36 per cent lower than a year earlier and three per cent lower than the previous quarter.
But the fall in trading volume was offset by growth in the bank’s investment banking division, which saw revenues increase to $1.12bn, 24 per cent higher than a year earlier, on the back of a 40 per cent increase in revenues from equity and bond underwriting.
Goldman also revealed it had put $3.8bn (£2.4bn) aside in the third quarter to cover employee pay and bonuses. For the year to date it has set aside $13.1bn to cover staff pay and bonuses, or £268,000 per employee. Overall, the staff pay and bonus pool is down 21 per cent from the $16.7bn set aside at this time last year.
Chairman and chief executive Lloyd Blankfein said the bank’s results reflect solid performance.
“While economic conditions continue to be challenging in a number of important markets, our focus is on helping our clients achieve their goals,” he said.