Goldman Sachs Posts Record Profit

By STEPHEN BERNARD

posted: 118 DAYS 4 HOURS AGO

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BREAKING NEWS: Goldman Sachs posts a second-quarter profit of $4.93 per share on revenue of $13.76 billion.

NEW YORK (July 14) - Goldman Sachs Group Inc., long considered one of the strongest banks amid the credit crisis and ongoing recession, is expected to post a hefty second-quarter profit Tuesday morning.

Goldman is poised to take advantage of fewer competitors on Wall Street and its ability to successfully manage more risk.

Analysts polled by Thomson Reuters, on average, forecast earnings of $3.54 per share for the quarter on revenue of $10.66 billion.

Investors will keep a close eye on Goldman's results as it is the first bank to report second quarter results.

Analysts predict other banks may not be as strong as Goldman Sachs as they were hit with greater loan losses because of their focus in retail banking and their more conservative approach to business after the credit crisis.

Bank of America Corp. and Citigroup Inc. have been among the hardest hit by loan losses and receiving a combined $90 billion in government bailout funds. JPMorgan Chase & Co. has repaid the government funds it received, but still remains saddled with rising consumer loan losses. All three banks report results later this week.

Last month, Goldman repaid the $10 billion it received in the fall as part of the Treasury Department's $700 billion bank investment program. Amid the mushrooming credit crisis and after the collapse of Goldman's competitor Lehman Brothers, the government provided hundreds of financial firms with cash to bolster their balance sheets.

The repayment of those funds will result in a charge of about 77 cents per share for Goldman, the bank said at the time when it repaid the loan.

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2009-07-14 08:33:47