Goldman Sachs released third quarter results on Wednesday that crushed analysts’ earnings estimates on stronger-than-expected results in bond trading and asset management
The company generated $ 3,62 billion in profit, a record $ 9,68 a share, beating the $ 5.57 per share estimate of analysts polled by Refinitiv Company revenue rose 30% to $ 10 78 billion , exceeding the estimate of over $ 1 billion, driven by the trading and asset management divisions
« Our ability to serve clients who operate in a very uncertain environment has generated strong performance across the franchise, building on a strong first half, » CEO David Solomon said in the release
The commercial division generated $ 4.55 billion in revenue, an increase of 29% over the previous year This gain was fueled by bond trading results of $ 2.5 billion, or nearly ‘half a billion dollars more than analysts polled by FactSet expected Equity trading income of $ 2.05 billion is basically in line with expectations
The asset management division produced $ 2.7 billion in revenue, a 71% gain from a year earlier and nearly $ 900 million more than the 191 billion dollar FactSet estimate
Goldman said the result was attributable to « significantly higher » income from equity investments and loans and debt investments The bank holds a portfolio of shares of public and private companies in this division, and Higher levels of the public equity market led to it, the company said
Solomon just marked his second year at the top of Goldman Sachs, but he continues to make his mark on the company Last month he restructured several of his businesses and appointed new managers for the management divisions New York-based bank asset and consumer and wealth management
The 151-year-old investment bank is undergoing a transformation, launching a host of digital banking products in hopes of disrupting its established retail banking competitors
He’s also pushing for increased income from wealth management, like rival Morgan Stanley, but hasn’t announced a mega-prize like the two major acquisitions Morgan Stanley revealed this year
Goldman shares fell 83% this year through Tuesday, a smaller drop than most major banks and the KBW Bank index’s 31% drop
In other banking income, Bank of America said on Wednesday it generated $ 20 45 billion in total revenue, missing the $ 20 8 billion estimate of analysts polled by Refinitv Wells Fargo on Wednesday reported disappointing third quarter results on Wednesday , low rates putting pressure on the bank’s net interest income
On Tuesday, rivals JPMorgan Chase and Citigroup released results that exceeded analysts’ expectations, with both banks putting less money aside for delinquent loans
Earnings: $ 9 68 per share, vs. $ 5.57 expected by Refinitiv’s consensus estimate Income: $ 10 78 billion, vs. $ 9 46 billion estimate
Trading income: fixed income of $ 2.5 billion vs. $ 2.03 billion FactSet estimate, stocks of $ 2.05 billion vs. $ 2 billion Estimate of $ 02 billion
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World news – UK – Goldman Sachs rates profits on stronger-than-expected bond trades
SOURCE: https://www.w24news.com
