Goldman Sachs profits slump 40%

Goldman Sachs profits slump 40%

Washington: Goldman Sachs earnings slumped 40% in the third quarter versus the same period a year ago, the company said on Tuesday.

Profits hit $1.9 billion, down from the $3.2 billion seen last year, as revenue slowed in the firm’s trading and fix income businesses.

Revenues from trading were 36% lower than the third quarter of 2009, while revenues for fixed income, currency and commodities were 37% lower.

The figures reflected “a challenging environment during the quarter, as activity levels were significantly lower compared with the third quarter of 2009," the firm said.

“Our third quarter results reflect solid performances across our businesses," said CEO Lloyd Blankfein.

“While economic conditions continue to be challenging in a number of important markets, our focus is on helping our clients achieve their goals. In doing this, we benefit from the strength of our balance sheet, our robust business model and the continuing breadth and depth of our global client franchise."

The one bright spot for the firm was revenues from investment banking which rose 24% to 1.1 billion.