Goldman Sachs Group, Inc. (NYSE: GS) on Tuesday reported third-quarter earnings that topped analysts’ estimates, driven by higher net revenues in Investment Banking and Investment Management.
The bank said net revenue rose 4% to USD 8.65 Billion in the third quarter of 2018, beating analysts’ estimates of USD 9.4 Billion. Earnings per share was USD 6.28 for the third quarter of 2018, compared to USD 5.02 per share a year earlier. Analysts had projected earnings per share of USD 5.38.
Higher investment banking and equity revenue offset the weakness in bond trading. Net revenue in investment banking rose 10% to USD 1.98 Billion in the third quarter, while net revenue in equities increase 8%to USD 1.79 Billion. Investment management revenue were USD 1.7 Billion in the third quarter, 12% higher than the revenue a year earlier. However, net revenue in Fixed Income, Currency and Commodities trading fell 10% to USD 1.31 Billion.
Goldman Sachs shares rose 0.92% to USD 217.2 per share in the early trading on Tuesday. The stock was down over 14% this year. Other banks also reported better-than-expected earnings for the third quarter, send the stock market indexes higher on Tuesday.
“We delivered solid results in the third quarter driven by contributions from across our diversified client franchise. Year-to-date earnings per share is the highest in our history and year-to-date return on equity is the highest in nine years, notwithstanding our continued investment in growth opportunities. We remain well positioned to continue delivering for our clients and shareholders.” David M. Solomon, Chief Executive Officer, said.