Goldman Sachs posts deeper-than-expected Q3 loss
Chief Executive Lloyd Blankfein cited difficult market conditions and a lack of confidence among investors and corporate clients for the poor results.”Our results were significantly impacted by the environment and we were disappointed to record a loss in the quarter,” Blankfein said.Shares of the largest U.S. investment bank by assets were down 2 percent in premarket trading.Goldman’s loss-driver was its Investing & Lending division, which holds stocks, bonds, loans and private equity assets as long-term investments.The division reported negative revenue of $2.48 billion as the value of those assets dropped sharply. Goldman’s stock investment in Industrial and Commercial Bank of China Ltd alone generated more than $1 billion of paper losses.Goldman was also hurt by big declines in bond trading and investment banking revenue.Its fixed income, currency and commodities client trading business reported $1.73 billion in revenue, a 36 percent decline from a year earlier. Investment banking revenue dropped 33 percent to $781 million.Overall, Goldman’s net revenue totaled $3.6 billion, down 60 percent from a year earlier and down 51 percent from the 2011 second quarter.Its third-quarter loss amounted to 84 cents per share, compared with a profit of $2.98 per share a year earlier. On average, analysts had expected a loss of 16 cents per share.
