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.