Goldman Sachs Group Inc (NYSE:GS, ETR:GOS) reported third-quarter earnings that beat Wall Street expectations, lifted by broad strength in investment banking and wealth management.
Investment banking fees surged 42% to $2.66 billion, with advisory revenue rising 60% to $1.4 billion.
Goldman’s Asset & Wealth Management unit saw revenue climb 17% to $4.4 billion, supported by $56 billion in long-term net inflows and assets under supervision of $3.45 trillion, slightly above estimates.
Platform Solutions revenue jumped 71% to $670 million, led by an 80% increase in consumer platforms revenue.
The New York-based bank posted net revenue of $15.18 billion, up 20% from a year earlier and above analysts’ estimate of $14.13 billion.
Earnings per share rose 46% to $12.25, exceeding the $11.02-$11.11 consensus.
Net interest income jumped 64% year-over-year to $3.85 billion, topping the estimated $2.87 billion.
Net income for the quarter reached $4.1 billion, up 37% from the year-ago period. Return on equity climbed to 14.2% from 10.4% a year earlier, while the efficiency ratio improved to 62.3%, down 3.2 percentage points from the prior year.
Goldman’s Global Banking & Markets division recorded revenue of $10.12 billion, up 18% from Q3 2024. Debt underwriting revenue rose 30% to $788 million, while equity underwriting grew 21% to $465 million.
Fixed income, currencies, and commodities revenue rose 17% to $3.47 billion, surpassing analyst expectations of $3.18 billion.
Despite the strong results, Goldman shares traded 3.2% lower in premarket action Tuesday, suggesting investor caution after the firm’s equities trading performance fell short of expectations. Equities revenue increased 7% to $3.74 billion but fell short of the $3.94 billion estimate, weighed down by a 9% decline in equities intermediation revenue.
Goldman’s total loans rose to $222 billion, above the $218 billion forecast, while deposits increased 5.2% quarter-over-quarter to $490 billion.