- Goldman Sachs’ third-quarter earnings beat estimates on higher-than-expected revenue.
Goldman Sachs announced third-quarter results Tuesday morning, posting earnings of $US6.28 a share. Analysts expected adjusted earnings of $US5.38 a share.
Here are the key numbers:
- Revenue: $US8.7 billion, up 4% from last year and beating expectations.
- Net income: $US2.5 billion, up 19% from last year and beating expectations.
- Return on equity: ROE rose to 13.7% year-to-date.
- Institutional client services: Revenue from sales and trading activities fell 1% to $US3.1 billion. Equities rose 8% to $US1.8 billion, while fixed income, currencies, and commodities revenue fell 10% to $US1.3 billion.
- Investment banking: Revenue rose 10% to $US2 billion, led by a surge in equity underwriting revenue.
- Investment management: Revenue rose 12% to $US1.7 billion.
- Investing and lending: Revenue fell 1% to $US1.9 billion.
“We delivered solid results in the third quarter driven by contributions from across our diversified client franchise,” David Solomon said in his first earnings statement as Goldman Sachs’ CEO. “Year-to-date earnings per share is the highest in our history and year-to-date return on equity is the highest in nine years, notwithstanding our continued investment in growth opportunities. We remain well positioned to continue delivering for our clients and shareholders.”
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