Goldman reports 2% fourth-quarter hike

Amidst one of the worst quarters to befall Wall Street in years, Goldman Sachs Group Inc. reported record earnings. A 2% increase in net income to brought company earnings to $3.22 billion, or $7.01 per share, in the quarter ended Nov. 30, compared to $3.15 billion, or $6.59 per share during the year-ago period. The New York-based financial services company attributed the hike to a sharp increase in revenues from investment banking and the equities business. Analysts surveyed by Thomson Financial projected a profit of $6.87 per share. Total investment banking revenue increased 47% to $1.97 billion on increased client activity. Revenue from the equities business increased 22% to $2.59 billion on higher trading volumes. Net revenue in trading and principal investments were up 4% to $6.93 billion, including a 6% increase in the fixed income, currencites and commodities trading group. Goldman’s results follow those of New York-based Lehman Brothers Holdings Corp., which last week reported that its fiscal fourth-quarter profit fell 11% but surpassed expectations (InvestmentNews, Dec. 13) .