Goldman Sachs' profit rises 19% on strong investment-banking revenue

Getty ImagesGoldman Sachs CEO David Solomon.
  • 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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