Goldman Sachs Q3 Results Top Estimates

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Kaufen / Verkaufen

(RTTNews) - Goldman Sachs Group, Inc. (GS) reported Monday that net profit for the third quarter surged 48 percent from last year, reflecting lower operating expenses and an 8 percent revenue growth, despite soaring provision for credit losses. Both earnings per share and quarterly revenues topped analysts' expectations.

"Our performance demonstrates the strength of our world-class franchise in an improving operating environment," said David Solomon, Chairman and CEO.

For the third quarter, net earnings applicable to common shareholders surged to $2.78 billion or $8.40 per share from $1.88 billion or $5.47 per share in the prior-year quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $6.89 per share for the quarter. Analysts' estimates typically exclude special items.

Provision for credit losses for the quarter more than soared to $397 million from just $7 million last year, primarily reflecting higher net provisions related to the credit card portfolio, primarily driven by net charge-offs.

Total operating expenses were $8.32 billion for the third quarter, down 8 percent from last year, reflecting a write-down of intangibles related to GreenSky in the prior year period and significantly lower impairments related to consolidated real estate investments, partially offset by higher transaction based expenses and a write-down of intangibles related to the GM credit card program.

Total net revenues for the quarter grew 7 percent to $12.70 billion from $11.82 billion in the same quarter last year, reflecting higher net revenues in Global Banking & Markets and Asset & Wealth Management. Analysts expected revenue of $11.80 billion for the quarter.

Net interest income surged 70 percent to $2.62 billion, while total non-interest revenues declined 2 percent to $10.08 billion from last year.

Net revenues in Global Banking & Markets were $8.55 billion for the quarter, up 7 percent from the previous year, driven by strong performance in Equities and record quarterly net revenues in Fixed Income, Currency and Commodities (FICC) financing.

Net revenues in Asset & Wealth Management grew 16 percent to $3.75 billion from the prior year, reflecting record quarterly Management and other fees as well as net gains in Equity investments compared with net losses in the prior year.

Meanwhile, net revenues in Platform Solutions declined 32 percent to $391 billion from last year, reflecting significantly lower net revenues in Consumer platforms.

On Friday, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $3.00 per common share to be paid on December 30, 2024 to common shareholders of record on December 2, 2024.

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