Investing.com -- Goldman Sachs reported third-quarter earnings that surpassed analyst estimates, driving its stock up 3.3% in early trading.
The investment banking giant posted adjusted earnings per share of $8.40 for the quarter ended September 30, 2024, significantly beating the analyst consensus of $6.93. Revenue came in at $12.7 billion, also topping expectations of $11.81 billion and marking a 7% increase from the same period last year.
Global Banking & Markets was a key driver of the strong performance, generating quarterly net revenues of $8.55 billion. The segment saw robust results in Equities and record quarterly revenues in Fixed Income, Currency and Commodities financing.
"Our performance demonstrates the strength of our world-class franchise in an improving operating environment," said David Solomon, Chairman and CEO of Goldman Sachs. "We continue to lean into our strengths – exceptional talent, execution capabilities and risk management expertise – allowing us to effectively serve our clients against a complex backdrop and deliver for shareholders."
Asset & Wealth Management also contributed to the positive results, with quarterly revenues of $3.75 billion, including record Management and other fees. Assets under supervision increased by $169 billion during the quarter to a record $3.10 trillion.
The firm maintained its leading position in investment banking, ranking first in worldwide announced and completed mergers and acquisitions and common stock offerings for the year to date. Goldman's investment banking fees rose 20% to $1.87 billion.
The bank revealed that its provision for credit losses was $397 million for the third quarter of 2024, compared with $7 million for the third quarter of 2023 and $282 million for the second quarter of 2024.
Goldman Sachs' book value per common share increased 1.8% during the quarter to $332.96. The company's annualized return on average common shareholders' equity (ROE) stood at 10.4% for the third quarter.