Goldman Sachs Tops Q3 Expectations, Shares Gain 3%

The Goldman Sachs Group (NYSE:GS) reported third-quarter results that exceeded Wall Street expectations, pushing its stock up more than 3% intra-day today. The investment bank recorded an adjusted earnings per share of $8.40 for the quarter, significantly ahead of analyst forecasts of $6.93. Revenue for the quarter reached $12.7 billion, beating the expected $11.81 billion and reflecting a 7% increase year-over-year.

A substantial portion of this growth came from its Global Banking & Markets division, which posted $8.55 billion in net revenues, bolstered by strong results in Equities and record quarterly gains in Fixed Income, Currency, and Commodities financing. Asset & Wealth Management also delivered, generating $3.75 billion in quarterly revenue, highlighted by record management and other fees. Total assets under supervision grew by $169 billion to reach an all-time high of $3.10 trillion.

In investment banking, Goldman Sachs maintained its top-ranking position for global announced and completed mergers and acquisitions and common stock offerings year-to-date, with fees in this division rising by 20% to $1.87 billion.

The bank reported a provision for credit losses of $397 million in the third quarter, up from $7 million in the same quarter last year and $282 million in the previous quarter. Its book value per common share rose 1.8% during the quarter to $332.96, and its annualized return on average common shareholders’ equity was reported at 10.4%.