Goldman Sachs Q3 Earnings: Investment Banking Fees Surges 20%, Asset & Wealth Management Up 16%, But Fixed Income Falters

Benzinga10-15

On Tuesday, Goldman Sachs Group Inc. (NYSE:GS) shares are trading higher after the company reported revenue of $12.70 billion for the third quarter, beating the consensus of $11.87 billion.

Sales increased 7% Y/Y, reflecting higher net revenues in Global Banking & Markets and Asset & Wealth Management, partially offset by lower net revenues in Platform Solutions.

Global Banking & Markets revenues were $8.55 billion, up 7% Y/Y. This was boosted by a 20% Y/Y increase in investment banking fees to $1.87 billion, led by higher revenues in Debt and Equity underwriting. Slight gains in advisory revenues contributed significantly to this growth.

Net revenues in Fixed Income, Currency, and Commodities (FICC) were $2.96 billion, down 12% Y/Y, primarily reflecting lower net revenues in FICC intermediation on weak net revenues in interest rate products and commodities.

Asset & Wealth Management revenue was $3.75 billion for the third quarter of 2024, 16% higher than last year.

The U.S. financial services giant reported EPS of $8.40, beating the consensus of $7.03.

Provision for credit losses was $397 million for the third quarter, compared with $7 million a year ago, reflecting net provisions related to the credit card portfolio (driven by net charge-offs).

Dividend: On October 11, 2024, the Board of Directors disclosed the quarterly dividend of $3.00 per common share, payable on December 30, 2024, to shareholders of record on December 2, 2024.

The company returned common share repurchases worth $1.00 billion in the quarter.

Global core liquid assets averaged $447 billion in the third quarter of 2024, up from $424 billion in the second quarter of 2024, reflecting a positive trend in liquidity.

David Solomon, Chairman and CEO, said, “”We continue to lean into our strengths – exceptional talent, execution capabilities and risk management expertise – allowing us to effectively serve our clients against a complex backdrop and deliver for shareholders.”

Investors can gain exposure to the stock via Shares U.S. Broker-Dealers & Securities Exchanges ETF (NYSE:IAI) and Global X Funds Global X Dow 30 Covered Call ETF (NYSE:DJIA).

Price Action: GS shares are up 2.92% at $538.00 premarket at the last check Tuesday.

Photo via Shutterstock

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