Goldman Sachs beats the street even with trading drop

Earnings Reuters

FILE PHOTO: A view of the Goldman Sachs stall on the floor of the New York Stock Exchange in New York, U.S., July 16, 2013. REUTERS/Brendan McDermid/File Photo (Copyright Reuters 2017)

Oct 17 (Reuters) - Goldman Sachs Group Inc. (GS) reported a decline in quarterly profit, as gains in investment banking were offset by a 26 percent drop in fixed-income trading revenue.

Continue Reading Below

Revenue from trading bonds, currencies and commodities (FICC) fell to $1.45 billion.

Net income applicable to common shareholders was $2.04 billion, or $5.02 per share, for the third quarter ended Sept. 30, compared with $2.10 billion, or $4.88 per share a year ago.

Analysts on average had expected earnings of $4.17 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported numbers were comparable.

More on this...

Total revenue, including net interest income, rose 2 percent to $8.33 billion.

Goldman's arch rival Morgan Stanley (MS) reported a higher profit, driven by its investment banking and wealth management businesses. However, fixed-income trading fell 20 percent to $1.2 billion.

Continue Reading Below

(Reporting By Aparajita Saxena in Bengaluru and Olivia Oran in New York; Editing by Bernard Orr)

What do you think?

Click the button below to comment on this article.