Economy

Goldman Sachs profits soar

Article published on the 2009-07-15 Latest update 2009-07-15 13:15 TU

(photo: DR)

Wall Street investment bank Goldman Sachs surpassed forecasts Tuesday posting 3.44 billion dollars (2.45 billion euros) in quarterly profits, after paying back a US government bailout. The 65 per cent net profit increase suggest the financial crisis may be easing.

Goldman paid back the ten billion dollar (7.11 billion euro) federal bailout in the full second quarter and reported earnings per share of 4.93 dollars (3.51 euros). Analysts had forcasted earnings of 3.54 dollars (2.52 euros). 

Goldman is the first of several large American banks to post second quarter results and investors are waiting for JP Morgan Chase on Thursday and Bank of America on Friday to see if public aid is helping the economy recover.

Following the announcement of Lehman Brothers last September, the government set up a 700-billion-dollar (500-billion-euro) Troubled Asset Relief Program, pouring taxpayer money into the financial sector in an effort to unblock frozen credit and kick-start the economy.

Last month Goldman was one of ten major US investment banks repaying the Treasury for the capital injections, in a sign of a stabalizing financial system.