Goldman Sachs Q3 Profit Falls 33% On Fintech Sale Impact, Trading, Investment Banking Remain Stagnant

Goldman Sachs Group Inc GS reported Q3 EPS of $5.47, down from $8.25 a year ago, beating the consensus of $5.31.

"We're confident that the work we're doing now provides us a much stronger platform for 2024," said David Solomon, chairman and CEO, in a statement.

Net revenues were $11.82 billion, almost in line with Q3 FY22, reflecting significantly lower net revenues in Asset & Wealth Management, offset by higher net revenues in Global Banking & Markets and Platform Solutions.

The bank's return on equity, a measurement of how well an investment bank is performing with the assets it holds, was 7.1% in the quarter.

Also Read: Goldman Sachs Wants to Opt Out Of Consumer Lending - Including Apple Card, General Motors Card. 

Net revenues in Asset & Wealth Management were $3.23 billion for 2023, 20% lower than Q3 FY22 and 6% higher than Q2 FY23, mainly due to net losses in Equity investments.

Global Banking & Markets revenues were $8.01 billion, up 6% Y/Y and 11% sequentially.

The bank saw a 1% rise in investment banking revenues from last year, and its trading business of bonds, currencies, and commodities was down 6% Y/Y. Equities trading was up 8%.

The bank took a $506 million write-down on GreenSky, adding to a $1.4 billion hit linked to the business in Q2.

Real estate investments were another drag on earnings as the bank booked an impairment charge of $358 million.

Price Action: GS shares are down 0.20% at $313.75 during the premarket session on the last check Tuesday.