🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Goldman Sachs tops expectations for investment banking and trading revenue

EditorHari G
Published 10/17/2023, 07:51 AM
© Reuters.  Goldman Sachs (GS) tops analyst expectations for investment banking and trading revenue
GS
-

Goldman Sachs (NYSE:GS) reported stronger-than-expected results, fueled by strong trading performance.

The company posted earnings of $5.47 per share, while the analysts' consensus stood at $5.54. Revenue for the quarter amounted to $11.82 billion, surpassing the expected figure of $11.21B.

“We continue to make significant progress executing on our strategic priorities and we’re confident that the work we’re doing now provides us a much stronger platform for 2024. I also expect a continued recovery in both capital markets and strategic activity if conditions remain conducive,” David Solomon, Chairman and CEO of Goldman Sachs, said.

“As the leader in M&A advisory and equity underwriting, a resurgence in activity will undoubtedly be a tailwind for Goldman Sachs.”

FICC sales & trading revenue reached $3.38B, exceeding the estimated $2.86B. Global Banking & Markets net revenues were $8.01B, outperforming the estimate of $7.06B.

Investment banking revenue amounted to $1.56B, slightly surpassing the estimate of $1.54B. Equities sales & trading revenue reached $2.96B, surpassing the estimated $2.68B.

Goldman Sachs is unique among major banks as it heavily relies on investment banking and trading revenue. While CEO David Solomon has worked on diversifying the company's revenue through endeavors like a retail banking push and a focus on asset and wealth management, it's clear that Wall Street activities continue to be a significant driver of the company's financial performance.

The annualized return on equity (ROE) was +7.1%, slightly below the estimate of +7.3%. The return on tangible equity was +7.7%, below the estimated +8.1%. The standardized CET1 ratio was 14.8%, slightly above the estimated 14.7%.

Goldman Sachs shares fell 0.5% in the aftermath of the Q3 earnings report.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.