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According to Huntley Mac and Goldman Sachs use a similar approach to risk management

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Goldman Sachs stays golden
What credit crisis? Wall Street firm delivers strong revenue and earnings growth with contributions from several divisions.
December 18 2007: 9:55 AM EST

NEW YORK (CNNMoney.com) -- Goldman Sachs once again sidestepped turbulence in the credit markets, as the celebrated Wall Street bank reported better-than-expected quarterly results Tuesday.

The Wall Street firm said net income at the bank rose 2.2 percent, to $3.22 billion, or $7.01 a share, during the fourth quarter ended Nov. 24. A year ago it earned $3.15 billion, or $6.59 a share.

Analysts were expecting earnings of $6.61 a share.

Net revenue rose 14 percent to $10.7 billion, slightly ahead of expectations.

Not all investors cheered the news as Goldman Sachs (GS, Fortune 500) shares were narrowly lower in early trade on the New York Stock Exchange.

Goldman Sachs Chairman and CEO Lloyd C. Blankfein suggested that risk management efforts helped insulate the company, as in the previous quarter when it placed big bets against mortgage-backed securities.

"We are ever mindful of the importance of effective risk management," he said.

Driving Goldman's results were strong performances across a number of divisions, including its investment banking unit, which saw revenue gain 47 percent, despite tough market conditions. The company added that its backlog of investment banking deals declined during the quarter, but still was up from a year ago.

The company's trading division saw its results improved modestly, helped by higher net revenues in its mortgage and interest rate products.

Also delivering a strong performance was the company's asset management division, which saw revenue climb by nearly a third since last year.

While many of its rivals have been hard hit by recent turmoil in financial markets and the ongoing credit crunch, Goldman has largely remained immune.

During the third quarter, Goldman said many of its businesses were "challenged", but the celebrated Wall Street firm still managed to post a surge in revenue and profit.

Last week, Lehman Brothers (LEH, Fortune 500) saw a decline in its quarterly profits, while suffering a $830 million hit in its fixed-income division.

Bear Stearns (BSC, Fortune 500) and Morgan Stanley (MS, Fortune 500), who have been hard hit by the credit crisis, are slated to report their results later this week.

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