Goldman Sachs (GS) earnings Q3 2021
Listed below are the numbers:
- Earnings: $14.93 a share vs. $10.18 consensus estimate, in line with Refinitiv
- Income: $13.61 billion vs. $11.68 billion consensus estimate
Goldman — led by CEO David Solomon — has the world’s premier funding banking franchise, and analysts had anticipated sturdy income from booming mergers and IPO exercise within the quarter. That theme performed out at Wall Road rivals from JPMorgan Chase to Morgan Stanley.
However Goldman exceeded expectations, producing $3.7 billion in funding banking income. That is an 88% enhance from a 12 months earlier and roughly $750 million greater than the StreetAccount estimate. These outcomes have been pushed by an increase in accomplished merger transactions and debt and fairness underwriting; the financial institution mentioned advisory income hit a file excessive.
Income within the financial institution’s markets division climbed 23% to $5.61 billion, as an anticipated slowdown in bond buying and selling was offset by a surge in financing outcomes.
Bond buying and selling income of $2 billion edged out the $1.97 billion StreetAccount estimate, whereas equities buying and selling of $1.92 billion missed the $2.08 billion estimate. Equities financing income greater than doubled 12 months over 12 months to a file $1.18 billion, and stuck earnings financing rose 55% to $513 million.
In the meantime, Goldman’s consumer-facing division posted positive aspects from excessive inventory market values and elevated bank card and deposit balances. The agency’s shopper and wealth administration division noticed income rise 35% to $2.02 billion, exceeding the $1.79 billion estimate.
“Goldman Sachs merely crushed third quarter earnings,” mentioned Dave Donovan, an government vice chairman of monetary companies for Publicis Sapient. “The place the opposite massive banks launched mortgage loss reserves to bolster third quarter numbers, Goldman’s technique has been rising the enterprise.”
Analysts are more likely to ask Solomon concerning the rationale for his $2.24 billion acquisition of fintech lender GreenSky. The deal is predicted to shut by the primary quarter of 2022.
The financial institution mentioned final month that CFO Stephen Scherr would step down by year-end, to get replaced by Denis Coleman, the present co-head of the agency’s International Financing Group.
Goldman shares have been up 47% this 12 months as of Friday, exceeding the 37% rise of the KBW Financial institution Index.
Goldman is the final of the six largest U.S. banks to report earnings. JPMorgan, Financial institution of America, Morgan Stanley, Citigroup and Wells Fargo exceeded expectations for revenue and income, helped by reserve releases and powerful funding banking income.
This story is growing. Please verify again for updates.
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