Goldman Sachs (NYSE:GS) swung to a third-quarter profit from a loss last year as revenues in its investment and lending division rebounded, more than doubling net sales and leading the Wall Street giant on Tuesday to raise its dividend.
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The banking giant posted net earnings of $1.51 billion, or $2.85 a share, compared with a year-earlier loss of $428 million, or 84 cents. Analysts on average were looking for earnings of $2.12 a share, according to a Thomson Reuters poll.
Revenue for the three months ended Sept. 30 was $8.35 billion, up 133% from $3.6 billion a year ago, beating the Street’s view of $7.3 billion.
Strong investment banking and market making revenues helped offset a 29% decline in commissions and fees. Investment banking sales jumped 50% to $1.17 billion from $781 million in 2011, while market making sales increased by 47% to $2.65 billion.
“This quarter’s performance was generally solid in the context of a still challenging economic environment,” Chief Executive Officer Lloyd Blankfein said in a statement.
Goldman raised its dividend on Tuesday to 50 cents a share from 46 cents to be paid on Dec. 28 to shareholders of record on Nov. 30.
Its shares were up slightly pre-market $124.80.