Goldman Sachs (GS) Reports Q3 Earnings

Goldman Sachs (NYSE:GS) last posted its earnings results on Thursday, October 15th. The firm had revenue of $6.86 billion for the quarter, compared to analyst estimates of $8.27 billion. Bank of America Corp, had reported 11 percent dip in revenue for comparable quarter.

But Karen Petrou at Federal Financial Analytics said the ground is gradually shifting under Goldman Sachs.

Wall Street bankers and traders are likely to get smaller bonuses for 2015 as trading revenue plunges.

“Any quarter where you have extreme market volatility like you did in the third quarter, you’re going to have a few mark-to- market issues”, Ryan said.

Meanwhile Citi reported revenues of $18.5bn, down 8pc year-on-year.

Goldman Sachs (NYSE:GS) traded up 3.04% during midday trading on Monday, hitting $184.96.

Investment-banking revenue continued to be a strong point for Goldman, climbing 6% to $1.6 billion.

Past year Goldman earned $2.14 billion, or $4.57 a share, on revenue of $8.4 billion.

As of September, total assets increased 2% to $881 billion and global core liquid assets were $193 billion.

“We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth”, said Goldman’s chief executive Lloyd Blankfein. During last six month period, the net percent change held by insiders has seen a change of -22.72%. The stock recently closed by the increase of +0.42% to $93.39.

The company has a market cap of $83.61 billion and a P/E ratio of 10.97.

“Overall, our actions to generate growth in our balance sheet and revenues, combined with our deliberate efforts to optimize our expense management initiatives, resulted in a solid quarter and put us on a positive forward-looking trajectory”, he said. Perhaps the most dramatic indication of market troubles rubbing off on banks was a sharp decline in revenue at Goldman Sachs’ Investment and Lending division, a catch-all unit containing a mix of debt and equity. She said the sweeping new financial regulations brought in after the financial crisis broadly impact the bank’s business model. This represents a $2.60 dividend on an annualized basis and a yield of 1.41%.

Citigroup, however, said on Thursday that after adjusting for certain debt valuations, its third-quarter profit surged 36 per cent, to about US$4.2 billion, compared with a year ago.

Employees who succeed in the two-year junior level posting are often hired to permanent posts at Goldman, considered a plum assignment on Wall Street. Mr Blankfein disclosed to his employees, board members and shareholders last month that he had been diagnosed with a curable form of lymphoma.