Goldman Sachs posts steep drop in quarterly profit

Workers sit in the Goldman Sachs booth on the floor of the New York Stock Exchange. The US investment bank has said fourth-quarter profit dropped 52 percent, dragging down full-year 2010 earnings by 38 percent from a year ago.

AFP - US investment bank Goldman Sachs on Wednesday said fourth-quarter profit dropped 52 percent amid falling revenue, dragging down full-year 2010 earnings by 38 percent from a year ago.

Goldman posted fourth-quarter profit of $2.39 billion, a 52 percent decline from the same period a year earlier.

For all of 2010, the New York-based bank said profits fell 38 percent from 2009, to $8.35 billion.

Profits were slightly above market expectations. Earnings per common share were $3.79 in the fourth quarter and $13.18 for the year. Analysts had estimated $3.76 and $13.14, respectively.

But revenue results were worse than expected.

Goldman, one of Wall Street's most prestigious banks, said fourth-quarter revenue fell 10 percent from a year ago, to $8.6 billion, while for the full year revenue was down 13 percent, at $39.2 billion.

"Market and economic conditions for much of 2010 were difficult," Lloyd Blankfein, Goldman chairman and chief executive, said in a statement.

"Looking ahead, we are seeing signs of growth and more economic activity and we are well-positioned to help our clients expand their businesses, manage their risks and invest in the future."