Profits At Goldman Sachs Fell 36 Percent In The 3rd Quarter

(CTN News) – It was reported on Tuesday that US investment bank Goldman Sachs had a fall in profits in its third quarter, with net losses in equity investments, compared to a year ago.

In the same period last year, the bank reported a profit of $1.9 billion, down 36 percent from the same period last year. At $11.8 billion, the company’s net revenues during this timeframe were “essentially unchanged” from the previous year.

Among other areas, the bank reported net losses from its real estate investments as well.

As a result, the asset and wealth management unit saw a decline in its net revenues of 20 percent as a result of this.
There was also a write-down of $506 million that Goldman Sachs took on GreenSky, which was acquired with great fanfare by Goldman Sachs in 2021, a fintech platform for home improvement loans.

In September 2021, GreenSky announced that it would be acquired by it for a total of $2.2 billion in stock, with the deal closing at a valuation of $1.7 billion.

As a result of a financial hit associated with the business in the previous quarter, the company has now reached a deal to sell GreenSky.

Earlier this week, the bank reported that it suffered a pre-tax loss of $677 million on the GreenSky deal.

The price of Goldman Sachs shares ticked up in premarket trading on Thursday.

“Continued recovery” is the goal

The chief executive of the company, David Solomon, said in a statement that he was confident that the work we are doing now will give us a much stronger platform for 2024, for which we will strive.

As long as conditions remain conducive, I expect both capital markets and strategic activity to continue to recover in the near future.

In Solomon’s view, Goldman Sachs is a leading firm in mergers and acquisitions advisory as well as equity underwriting, and a resurgence in activity will undoubtedly be a tailwind for the company.

Likewise, Bank of America reported better earnings than expected in the third quarter, with its net income rising by 10 percent to $7.8 billion, more than expected.

The surge in revenue, net of interest expense, to $25.2 billion has been attributed to a three percent rise in revenue, net of interest expense.

Brian Moynihan, the company’s chief executive, stated in a statement that its performance had been driven by a “healthy economy, although it was slowing, with US consumer spending still ahead of last year, but at a slower pace.”

In spite of this, he added that “we added clients and accounts across the whole of our business.”.

In the wake of last week’s robust earnings report from banking giants JPMorgan Chase, Citigroup, and Wells Fargo, Goldman Sachs and Bank of America have posted stellar results, reflecting a continued boost from higher interest rates.

Despite this, executives at the company cautioned that there were signs that the favorable industry conditions were moderating, as well as the conflicts in Ukraine and the Middle East adding to the uncertainty.

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