Goldman’s equity traders post big haul as credit, rates miss
Fixed-income and commodities traders bring in US$3.47 billion, much lower than expected
Goldman Sachs' equities traders surpassed expectations in the third quarter, reporting revenue of US$6.44 billion for the period ending September. This marked a decline from the all-time high of US$7.42 billion in the previous quarter, but still outpaced analyst expectations. Fixed-income and commodities traders brought in US$3.47 billion, significantly below expectations and a 1% drop from the year-ago period, following CEO David Solomon's warning of a slower quarter.
The company's dealmaking machine, particularly its investment bankers, contributed to the growth, generating a higher-than-expected fee haul of US$3.22 billion. Goldman's asset-management unit also recorded record management fees. Despite the strong performance, the bank's shares fell in the face of rising bond yields affecting capital-markets activity.
CEO Solomon cited a "complicated operating environment" and uncertainty as factors impacting the bank's performance.
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