Goldman Sachs Group reported an increase in its earnings of 47% and beat expectations in the third quarter, according to an article by Liz Hoffman and Rachel Louise Ensign for The Wall Street Journal.
The firm reported a profit of $2.09 billion or $4.88 per share, according to the article. That is an increase from $1.43 billion or $2.9 per share from last year.
From the article:
Revenue grew 19% to $8.17 billion from $6.86 billion a year earlier, when sluggish trading activity across Wall Street—particularly in fixed-income, where Goldman is strongest—dragged down earnings.
Analysts polled by Thomson Reuters had expected Goldman to earn $3.82 a share on revenue of $7.42 billion. Shares climbed 2.4%.
“We saw solid performance across the franchise that helped counter typical seasonal weakness,” Chief Executive Lloyd Blankfein said in prepared remarks.
Goldman Sachs’ increase was due to significantly higher net revenues in interest rate products and credit products, as well as higher net revenues in mortgages, according to the company.
The increase is not unexpected as Bank of America, Wells Fargo and JPMorgan Chase, also beat expectations this quarter, however Citigroup fell short.
