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Goldman Sachs Beats Q3 Earnings Estimates on Asset Management Growth

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GS$893.95 −0.15%

Goldman Sachs Group, Inc. (NYSE:GS) posted third-quarter financial results that topped market expectations, driven by solid expansion in its asset and wealth management unit. The bank reported GAAP earnings per share of $17.01 on total revenue of $18.7 billion, surpassing average analyst estimates of $13.09 per share and $16.9 billion in revenue.

The gain in asset and wealth management helped counterbalance a pullback in trading activity compared to a stronger second quarter. Revenue in asset and wealth management climbed 10% sequentially to $5.06 billion. Meanwhile, Global Banking & Markets revenue fell 13% from the prior quarter to $13.5 billion, despite rising 32% year-over-year. Chief Executive Officer David Solomon stated that client demand for advice and financing delivered the firm's second-highest quarterly net revenue on record.

Investors will keep an eye on broader market trading trends and credit quality moving forward. Goldman Sachs set aside $368 million for credit loss provisions in the quarter, while total loans grew to $276 billion and deposits expanded to $568 billion as of late September.

Key points

  • Goldman Sachs reported Q3 earnings per share of $17.01 on revenue of $18.7 billion, beating analyst estimates.
  • Asset & Wealth Management revenue rose 10% quarter-over-quarter to $5.06 billion, helping offset lower trading revenue.
  • Global Banking & Markets revenue fell 13% from the previous quarter to $13.5 billion, though it rose 32% year-over-year.
  • Total loans increased to $276 billion and total deposits reached $568 billion by the end of the third quarter.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Did Goldman Sachs beat Q3 earnings estimates?

Yes. Goldman Sachs reported third-quarter earnings per share of $17.01 on revenue of $18.7 billion, beating average analyst estimates of $13.09 per share and $16.9 billion in revenue.

How did Goldman Sachs asset and wealth management perform in Q3?

Net revenue for Asset & Wealth Management reached $5.06 billion, reflecting a 10% increase from the prior quarter and a 14% gain compared to the third quarter of the previous year.