Goldmans profits fall 58% but beat expectations

Goldman Sachs has reported a 58% drop in net income for the fourth quarter of 2011 but its shares opened higher today as the figures beat analyst expectations.

Goldmans' fourth quarter net income fell to $1.01bn, down from $2.39bn for the comparable period in 2011. Earnings of $1.84 per share were ahead of the average estimate of $1.23. Net revenues in the investment banking unit for the fourth quarter fell 43% year on year to $857m. Over the year as a whole, net revenues across the company fell from $39.2bn to $28.8bn, a drop of 26%. Net earnings fell 47% to $4.4bn. "This past year was dominated by global macroeconomic concerns which significantly affected our clients' risk tolerance and willingness to transact," said Goldmans CEO and ch...