Goldman Sachs Q3 Results Down, Yet Beat Market View

(RTTNews) - Banking major Goldman Sachs Group Inc. announced Tuesday weak earnings in its third quarter, mainly reflecting higher expenses and significantly lower net revenues in Asset & Wealth Management. Earnings and topline, however, beat market estimates.

David Solomon, Chairman and Chief Executive Officer, said, "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."

For the third quarter, the company's net earnings applicable to common shareholders fell 36 percent to $1.88 billion from last year's $2.96 billion. Earnings per share were $5.47, down 34 percent from $8.25 a year ago.

Analysts on average had expected the company to earn $5.31 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Provision for credit losses for the third quarter was $7 million, compared with $515 million a year ago. Operating expenses were $9.05 billion of 2023, 18 percent higher than the previous year.

The company's net revenue for the quarter fell 1.3 percent to $11.82 billion from $11.98 billion last year. The Street was looking for revenues of $11.19 billion for the quarter.

Sequentially, revenues grew 8 percent.

In the quarter, total non-interest revenues grew 3 percent year-over-year to $10.27 billion, while net interest income fell 24 percent to $1.55 billion.

Net revenues were hurt by significantly lower net revenues in Asset & Wealth Management, offset by higher net revenues in Global Banking & Markets and Platform Solutions.

Net revenues in Asset & Wealth Management were $3.23 billion, 20 percent lower than the previous period.

Net revenues in Global Banking & Markets were $8.01 billion, 6 percent higher than last year, driven mainly by strong performances in Fixed Income, Currency and Commodities or FICC.

Platform Solutions generated quarterly net revenues of $578 million, 53 percent higher than last year, with significantly higher net revenues in Consumer platforms.

Among regions, Americas generated revenues of $7.57 billion, higher than last year, and represented 64 percent of total revenues, compared to 62 percent a year ago. EMEA revenues were $2.81 billion, lower than the prior year. It represented 24 percent of total revenues, compared to 26 percent a year ago.

Asia remained at 12 percent of total revenues, with $1.44 billion, higher than last year's $1.39 billion.

Total Assets Under Supervision or AUS were $2.68 trillion, higher than last year's $2.43 trillion.

In pre-market activity on the NYSE, Goldman Sachs shares were trading at $314.80, up 0.13 percent.

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