- Goldman Sachs reported third-quarter earnings on Tuesday that beat analysts’ expectations.
- The investment bank posted $12.7 billion of revenue and almost $3 billion of net earnings.
- Goldman’s investment banking fees soared 20% year-on-year to about $1.9 billion.
Goldman Sachs reported third-quarter earnings on Tuesday that beat Wall Street’s expectations, sending its stock up as much as 3% in premarket trading.
The investment bank generated $12.7 billion of net revenue, a 7% increase from the same period last year. It also cut its operating expenses by 8%, fueling a 45% surge in net income to $2.99 billion.
Earnings per share were $8.40, exceeding Alphasense’s consensus estimate of $6.71.
CEO David Solomon said in the earnings release: “Our performance demonstrates the strength of our world-class franchise in an improving operating environment. We continue to lean into our strengths – exceptional talent, execution capabilities and risk management expertise – allowing us to effectively serve our clients against a complex backdrop and deliver for shareholders.”
He had struck a cautious tone at a Barclays conference in September, per a transcript provided by AlphaSense, warning that Goldman’s trading unit was trending 10% lower than a year earlier largely due to fixed-income weakness.
Solomon had also warned of a roughly $400 million blow to pre-tax earnings from the bank shifting away from its credit card partnership with General Motors and selling its seller financing loans.
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