Trading Revenues Plunge at Goldman Sachs; Earnings Even

The nation's largest stand-alone investment bank, Goldman Sachs (NYSE: GS  ) , reported third-quarter earnings this morning that were flat compared to the year-ago period. For the three months ended Sept. 30, the company earned $2.88 per share compared to $2.85 per share last year.

Goldman's results are consistent with a now-familiar pattern of performance that's emerged from competitors. Revenues were decimated, falling by 20% on a year-over-year basis, while expenses were dramatically cut to make up for the difference.

"The third quarter's results reflected a period of slow client activity," said Chairman and CEO Lloyd C. Blankfein.

Reminiscent of both JPMorgan Chase and Citigroup reports, Goldman was hit particularly hard in its proprietary trading operations, where revenues fell by 32% over the last 12 months. The decline followed a period of low volume in the fixed-income markets stemming from concern about the Federal Reserve and the budget and debt limit impasses in Washington.

Speaking of the latter, Blankfein noted that, "As longer term U.S. budget issues are resolved, we could see an improvement in corporate and investor sentiment that would help lay the basis for a more sustained recovery."

The board also increased the firm's quarterly dividend from $0.50 to $0.55 per share.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2687609, ~/Articles/ArticleHandler.aspx, 9/27/2016 3:03:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
GS $161.48 Down -3.65 -2.21%
Goldman Sachs CAPS Rating: ***