(25 January 2010 – USA) Wall Street bank, Goldman Sachs, has reported its fourth quarter results, announcing a net profit of US$4.95 billion (A$5.48 billion) achieving the group’s highest quarterly earnings ever.The investment bank made a loss in the same quarter a year earlier of $2.12 billion.
For the 2009 year, the bank reported a net profit of US$13.39 billion, up from US$2.32 billion the previous year.
Overall US$16 billion was set aside for compensation including bonuses and benefits for 2009, a 48 percent increase on last year.
David Viniar, finance chief, Goldman Sachs said that he believes the people of Goldman Sachs did a great job in 2009.
Goldman Sachs said that fourth-quarter compensation had been reduced to fund a charitable contribution of US$500 million to one of the firm’s philanthropy programs aimed at stimulating US economic growth and job creation.
Mr Viniar also said that the majority of the reductions would affect top executives and that the bank has not been blind to the calls for restraint and has heard them.
If the bonuses pool is averaged out amongst the bank’s 32,500 employees, each would receive nearly US$500,000 dollars in compensation and benefits in 2009.