Monday April 13, 10:40 PM
Goldman Sachs posts $1.81 bln first quarter profit
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NEW YORK (AFP) - US banking giant Goldman Sachs reported Monday first-quarter net profit of 1.81 billion dollars, soundly topping market expectations, and announced a massive share issue aimed at repaying public aid.
Goldman Sachs said in a statement after the stock market close that it had earnings per share of 3.39 dollars, above consensus market forecast of 1.33 dollars per share.
For the 2008 fourth quarter, Goldman posted a net loss of 2.12 billion dollars.
"Given the difficult market conditions, we are pleased with this quarter's performance," Lloyd Blankfein, Goldman's chairman and chief executive, said in the statement.
"Our results reflect the strength and diversity of our client franchise, the resilience of our business model and the dedication and focus of our people."
Goldman Sachs previously had been scheduled to publish its financial results early Tuesday before the stock market opening. The company maintained its earnings conference call with analysts on Tuesday at 1100 GMT.
The results of the first quarter, that ended on March 27, are not directly comparable to those of the 2008 first quarter, which ended in late February and saw net profit of 1.51 billion dollars.
Goldman Sachs subsequently switched from a fiscal year that ended in November to a calendar year.
In a separate statement, the bank announced it would put five billion dollars in common stock on the market to help it raise cash to repay a government rescue of 10 billion dollars.
Goldman said it would serve as the sole underwriter for the public sale offer of five billion dollars of its common stock.
Goldman Sachs, one of the major US banks undergoing "stress tests" by federal authorities to determine their viability, said it hoped the capital raised in the share offer would allow it to repay all of the public money injected through the Treasury's Troubled Asset Relief Program.
"After the completion of the stress assessment, if permitted by our supervisors and if supported by the results of the stress assessment, Goldman Sachs would like to use the capital raised plus additional resources to redeem all of the TARP capital," the company said.
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