Goldman Sachs announced third-quarter results that smashed analysts’ earnings estimates on stronger-than-expected results in bond trading and asset management.
The company posted earnings of $ 3.62 billion, or a record $ 9.68 a share, beating analysts surveyed by Refinitiv’s estimate of $ 5.57 a share. Company-wide revenue increased 30% to $ 10.78 billion, beating the estimate of over $ 1 billion, driven by the trading and asset management divisions.
The bank’s shares jumped 3.1% in pre-market trading.
“Our ability to serve clients on the move in a highly uncertain environment has led to strong performance across franchising, building a strong first half of the year,” CEO David Solomon He said in the statement.
The bank’s trading division generated revenues of $ 4.55 billion, an increase of 29% over the same period last year. The gain was supported by the results of a $ 2.5 billion bond trading, nearly half a billion dollars more than analysts polled by FactSet had forecast. Equity revenue of $ 2.05 billion was basically in line with expectations.
The company’s asset management division generated $ 2.77 billion in revenue, a 71% increase over the previous year and nearly $ 900 million more than FactSet’s estimate of $ 1.91 billion.
Goldman said the result was driven by “significantly higher” revenues from equity investments, lending and debt investments. The company said that the bank maintains a portfolio of public and private company shares in this section, and high market levels in public stocks have pushed the pace there.
Suleiman has just celebrated his second year at the helm of Goldman Sachs, but he is still making his mark on the company. Last month, he is Restructuring Many of his businesses and the appointment of new heads of asset management, consumer and wealth management at the New York-based bank.
The 151-year-old investment bank is in the midst of a transformation, having launched a slew of Digital banking services Products hoping to disrupt banking retail competitors.
It also pays to get more revenue from wealth management, like its rival Morgan Stanley, but has not announced Huge deals Like the two major acquisitions revealed by Morgan Stanley this year.
Goldman shares are down 8.3% this year, a drop lower than most major banks and a 31% drop in the KBW Bank Index.
On Tuesday, competitors JPMorgan Chase and Citigroup reported results that beat analysts’ expectations from both banks. Saving less money For bad loans.
Here’s how the company did:
Earnings: $ 9.68 per share, versus $ 5.57 expected according to Refinitiv agreed estimate.
Revenue: $ 10.78 billion, versus an estimated $ 9.46 billion.
Trading Revenue: Fixed Income: $ 2.5 billion versus $ 2.03 billion, FactSet Estimates, Equity $ 2.05 billion versus $ 2.02 billion Estimated.
This story is developing. . Please check back for updates
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