July 20 (Bloomberg) -- Goldman Sachs Group Inc. said second-quarter profit plunged 82 percent to the lowest level since the end of 2008 as trading revenue declined more than analysts estimated.
Net income fell to $613 million, or 78 cents a share, from $3.44 billion, or $4.93, a year earlier, New York-based Goldman Sachs said in a statement today. The average estimate of 21 analysts surveyed by Bloomberg was for earnings of $1.99 per share, with estimates ranging from 77 cents to $4.34.
The earnings, released five days after the firm agreed to pay $550 million to settle a U.S. Securities and Exchange Commission fraud lawsuit, followed similar drops at larger competitors including JPMorgan Chase & Co. Concern about economic growth and financial reform legislation reduced clients’ willingness to take risk and do deals, crimping profits at finance companies and weighing on stocks.
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Overall revenue dropped to $8.84 billion, 31 percent below the first quarter and down 36 percent from the second quarter of last year. The biggest component, revenue from trading fixed- income, currencies and commodities, fell to $4.4 billion from $7.39 billion in the first quarter and $6.8 billion a year earlier.
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