Goldman Sachs tops expectations with Q3 earnings

US banking giant Goldman Sachs topped expectations with its third-quarter revenue and profits on Tuesday thanks to a solid bond trading performance.

Goldman Sachs delivered earnings of $8.25 per share, ahead of estimates of $7.69 each but down 43% year-on-year, and $11.98bn in revenues, easily beating expectations of $11.41bn but 12% lower when compared to the same time a year earlier.

The New York-based bank said global markets generated quarterly net revenues came to $6.20bn, reflecting strong performances in both fixed income, currency and commodities, and equities, particularly in financing.

GS' consumer and wealth management unit generated record quarterly net revenues of $2.38b, 18% higher than the third quarter of 2021, while firmwide management and other fees also hit a record $2.24bn, up 15% year-on-year.

Annualised returns on average common shareholders' equity was 11.0% for the third quarter and 12.2% for the first nine months of 2022.

Provision for credit losses came to $515.0m for the quarter, compared with $175.0m in the third quarter of 2021 and $667.0m in the second quarter of 2022.

Chief executive David Solomon said: "Goldman Sachs' third quarter results reflect the strength, breadth and diversification of our global franchise. Against the backdrop of uncertainty and volatility in the markets, we continue to prudently manage our resources and remain focused on risk management as we serve our clients. Importantly, we are confident that our strategic evolution will drive higher, more durable returns and unlock long-term value for shareholders."

As of 1310 BST, Goldman Sachs shares were up 2.70% in pre-market trading at $315.0 per share.

Reporting by Iain Gilbert at Sharescast.com