Prime Highlights-
- Goldman Sachs beats third-quarter profit estimates at $17.01 per share as equities revenue jumps 72% to $6.44 billion.
- Investment banking fees rise 21% to $3.22 billion, with record advisory revenue and a strong deal pipeline expected to continue.
Key Facts-
- Total net revenue rises 23% to $18.68 billion, its second highest quarterly total.
- Asset and wealth management revenue climbs 14%, while the private credit fund stays within its 5% cap.
Background-
Goldman Sachs beat third-quarter profit estimates, powered by a strong equities business and steady dealmaking. Shares rose 3.8% before the bell.
The bank earned $5.29 billion, or $17.01 per share, for the three months ended September 30. That compares with $4.10 billion, or $12.25 per share, a year ago. Analysts expected $13.02 per share, according to LSEG estimates.
Equities revenue jumped 72% to $6.44 billion as investors actively reshuffled portfolios during a busy quarter. Fixed income, currency and commodities revenue reached $3.47 billion.
Investment banking fees rose 21% to $3.22 billion. Advisory revenue climbed 18% to a record, and the bank also posted higher debt and equity underwriting. Goldman served as joint lead bookrunner on Intel’s $23 billion equity offering and as global coordinator on SK Hynix’s $26.5 billion US offering.
Stephen Biggar, an analyst at Argus Research, said the results show a robust pipeline of deal activity that should keep investment banking revenue elevated in the coming quarters.
Growth of 14% in asset and wealth management revenue pushed total net revenue up 23% to $18.68 billion, the bank’s second best quarterly result. Goldman’s private credit fund also stayed under its 5% threshold for a third straight quarter.
CEO David Solomon said the firm remains very well positioned to continue delivering for its clients.
