14 Apr 2009

Goldman Sachs reports strong results

10:10 am on 14 April 2009

US bank Goldman Sachs has reported a net quarterly profit of $US1.8 billion, beating analyst expectations and a day early.

In contrast, the previous quarter saw the company post its first quarterly loss since going public in 1999. The firm had a loss of $US2.12 billion.

The bank also said it would place $US5 billion worth of stock on the market, to raise funds to repay an emergency loan of $US10 billion provided by the US government.

Some analysts say the earnings results, up 13% year-on-year, suggest the worst could be over for finance firms.

Last week Wells Fargo surprised investors by saying it expected a record net profit for the quarter.

The loans that the bank is seeking to repay is part of the White House's $US700 billion Troubled Asset Relief Program (TARP).

The BBC reports Goldman Sachs is one the firms undergoing "stress tests" by federal authorities to determine their viability.