Goldman Sachs it ended the third quarter with earnings of $1,52 billion ($2,88 per share). The result of the American business bank is substantially stable on an annual basis and records a drop of 21% compared to the previous three months. Analysts' forecasts, however, did not go beyond $2,43 per share.
The bank was able to balance a 44% decline in fixed income business revenue with a sharp reduction in operating expenses (-25% to $4,56 billion). In general, the turnover has disappointed the estimates: the turnover has dropped by 20%, to 6,72 billion dollars, against estimates for 7,36 billion dollars.
Revenue from fixed income businesses and foreign exchange and commodity trading fell to $1,25 billion from $2,22 billion in the same period last year and from $2,46 billion in the prior three months .
The generalized weakness of the bond market during the summer, determined by the uncertainty about the moves of the Federal Reserve on measures to stimulate the economy, penalized the Bank. It should be noted that the revenue generated by the securities decreased to 1,62 billion dollars, from 1,96 billion last year and from 1,85 billion in the second quarter. Return on capital was 8,1% in the first quarter and 10,4% in the first nine months of the year.
