Goldman Sachs rides investment banking, trading to big earnings beat
Bond-trading raked in $4.24 billion
Republican National Committee chairperson Ronna McDaniel argues the case against presumptive Democratic nominee Joe Biden, saying 'Americans will be poorer' if Biden is elected.
Goldman Sachs Group shattered Wall Street expectations amid record-breaking performance from its investment bank and the strongest quarter for bond trading in nine years.
The New York-based company earned $2.42 billion, or $6.26 a share, outpacing the $3.78 that Wall Street analysts surveyed by Refinitiv were expecting.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP INC. | 837.83 | +1.26 | +0.15% |
Revenue jumped 41 percent from a year ago to $13.3 billion, the second-highest quarterly total on record, outpacing the consensus estimate of $9.75 billion. The firm’s bond-trading desk raked in $4.24 billion, while its equity trading generated $2.94 billion, an 11-year high.
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Goldman’s investment banking division, which underwrites stock and bond offerings in addition to providing financial advice on mergers and acquisitions, brought in a record $2.66 billion of revenue.
“Our strong financial performance across our client franchises demonstrates the inherent benefits of our diversified business model,” Goldman Sachs CEO David Solomon said in a statement. “While the economic outlook remains uncertain, I am confident that we will continue to be the firm of choice for clients around the world who are looking to reshape their businesses and rebuild a more resilient economy..”
Goldman set aside $1.59 billion for disruptions caused by COVID-19, bringing the annual total allowance for credit losses to $4.39 billion.
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Shares fell 6.92 percent this year through Tuesday, a steeper drop than the 1.03 percent decline on the S&P 500.