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.<\/p>\n
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<\/span> and strategic activity if conditions remain conducive.”<\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n 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.<\/p>\n Sequentially, revenues grew 8 percent.<\/p>\n 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.<\/p>\n 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.<\/p>\n Net revenues in Asset & Wealth Management were $3.23 billion, 20 percent lower than the previous period. <\/p>\n 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.<\/p>\n Platform Solutions generated quarterly net revenues of $578 million, 53 percent higher than last year, with significantly higher net revenues in Consumer platforms.<\/p>\n 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.<\/p>\n Asia remained at 12 percent of total revenues, with $1.44 billion, higher than last year’s $1.39 billion.<\/p>\n Total Assets Under Supervision or AUS were $2.68 trillion, higher than last year’s $2.43 trillion.<\/p>\n In pre-market activity on the NYSE, Goldman Sachs shares were trading at $314.80, up 0.13 percent.<\/p>\n For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com. <\/p>\n