Goldman Sachs (GS) reported stronger-than-expected third-quarter results due to its investment banking business.
The Bank generated adjusted analyst expectations of $ 5.38 per share of $ 6.28. Quarterly revenue was $ 8.65, exceeding estimates of $ 8.36 billion.
Trading revenues for the third quarter were $ 3.1 billion compared to $ 3.12 billion. To further reduce this, FICC revenues and trading revenues came in at $ 1.31 billion, excluding estimates of $ 1.45 billion. The bank attributed FICC's slowdown to "significantly lower net interest income and lower net returns on credit products and mortgages, while operating in an environment characterized by low client activity and low volatility".
Stock sales and trading revenues were $ 1.79 billion, exceeding estimates of $ 1.73 billion.
Investment banking revenues were $ 1.98 billion, exceeding $ 1.75 billion
In Investment Banking, net underwriting income was $ 1.06 billion, up 20% from the prior-year period same quarter of the previous year. The stock was driven by IPOs, but was offset by lower demand for debt securities, the bank said.
Investment Management was another bright spot for the bank, with $ 1.7 billion in revenue, up 12% from the same period a year ago. The bank said the increase was "primarily due to higher management and other fees". The division reported a $ 37 billion increase in assets under management and overshot $ 1.55 trillion at the end of the quarter.
During the quarter time lloyd Blankfein handed the torch to his successor David Solomon.
"We delivered solid results in the third quarter, driven by contributions from our diversified customer franchise," Solomon said in a statement. "Year-to-date earnings per share are the highest in our history and return on equity since the beginning of the year is the highest in nine years, despite our continued investment in growth opportunities, and we remain well positioned to continue delivering to our clients and shareholders."
Solomon will host the company's conference call later Tuesday morning.
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