Goldman beats forecast despite 72% fall in profits

Goldman Sachs' profits fell 72% in the first quarter as the bank's trading revenue declined and earnings were hit by a $1.64bn dividend payment to Warren Buffett's Berkshire Hathaway.

Excluding the dividend payment, earnings declined 21% to $2.74bn from $3.46bn a year ago, beating Wall Street's expectations after the exceptionally strong performance of Goldman's trading arm in the first three months of 2010, the FT reports. Earnings per share, which include dividend payments, fell to $1.56 from $5.59, but that was ahead of analysts' forecasts of 81 cents a share. In March, Goldman announced plans to repurchase $5bn in preferred shares issued to Berkshire at the height of the financial crisis, which included a $1.64bn preferred dividend payment. Excluding that char...