Goldman Sachs Earnings Edge Down, Exceeds Expectations

On Tuesday, Goldman Sachs recorded slightly weaker third-quarter profits. However, it overcame analyst expectations as a strong performance by the investments of the bank offset weakness in trading.

Net income for the quarter ending Sept. 30 was $2.0 billion, down 3% from the year-ago period.

Revenues increased by 1.9% to $8.3 billion.

Wall Street firms have been compelled by abrupt declines in the currency, fixed income, and commodity trading business because of low volatility and a rise in automated trading platforms. This trend continued at Goldman, where the revenues of the division sank 26% from the year-ago quarter.

However, Goldman counteracted that weakness with gains in its investing and lending division, which consists of the own holdings of private and publicly traded securities, loans and investment funds of Goldman.

Also, revenues were higher in the investment banking division, raised by an increase in mergers that were completed.

“Our overall performance this year has been solid and provides a good foundation on which to execute and deliver our growth initiatives,” stated chief executive Lloyd Blankfein.

Earnings rendered into $5.02 per share, better than the $4.17 that was expected by analysts.

In pre-market trading, shares rose 1.2% to $245.24.