Goldman posts 72% drop in quarterly earnings

Goldman Sachs Group Inc posted a 72% decline in first-quarter profit as it made less money from trading bonds for clients.

The largest US investment bank posted a profit to common shareholders of USD 908 million, or USD 1.56 a share, compared with USD 3.3 billion, or USD 5.59 a share, in the same quarter a year ago.

Results in the latest quarter were also hit by the repurchase of USD 5 billion of preferred shares from Warren Buffett's Berkshire Hathaway. The redemption resulted in a special preferred dividend of USD 1.64 billion. Excluding that charge, the bank would have earned USD 4.38 a share.

Revenue fell 7%.

Goldman Sachs set aside USD 5.23 billion for employee compensation in the quarter, a 5% decline from the same quarter last year.