Goldman Sachs: profit rises on trading, asset management
(CercleFinance.com) - Goldman Sachs's third-quarter profit almost doubled, as the bank reported solid revenue from its asset management unit and its fixed-income, currencies and commodities, or FICC, trading businesses.
The US investment bank said net earnings applicable to shareholders rose to 3.5 billion dollars, or 9.77 dollar per share, in the third quarter ended 30 September, from 1.8 billion dollars, or 4.83 dollar per share, a year earlier.
Analysts on average had forecast earnings per share of 5.57 dollars.
Net revenue rose 30% to 10.8 billion dollars, handily beating the average estimate of 9.5 billion dollars.
In a statement, CEO David Solomon said the firm's clients "begin to emerge" from the tough economy brought on by the pandemic.
Revenues in asset management jumped by 71% to 2.8 billion dollars, while revenues in the market division rose by 29% to 4.5 billion dollars, helped by higher revenues in interest rate products, mortgages, commodities and credit products.
Shares were up 2.6% before the bell compared with a close of 210.8 dollars on the New York Stock Exchange.
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