World News – United States – Goldman posts biggest Wall Street leap to date

Goldman Sachs Group Inc joins another big US banks in profiting from pandemic-induced volatility, as the company’s bond traders recorded the biggest jump on Wall Street to date Q3 business from buying and selling stocks and bonds increased 29%, driven by a 49% surge in fixed income trading and reflecting similar gains reported Tuesday by JPMorgan Chase & Co and Citigroup Inc Revenues from each of Goldman’s four divisions increased year over year, pushing earnings per share to record nearly twice as high as analysts expected

Many investors expected Goldman to beat the estimates, « but nowhere near this order of magnitude, the strength coming from both high and low quality sources, » wrote analyst Steven Chubak at Wolfe Research, in a note « Whichever whisper number you have, they crushed it too » Trade gains since the start of the pandemic have helped offset weakness in consumer businesses at the nation’s largest banks, where provisions for loan losses accumulated in the first half of the year For Goldman, which is still a minnow in the world of retail banking, the trading and trading divisions have helped cushion its share price against the kinds of steep declines some of its competitors have experienced.

The company’s shares are down 83% from this year to Tuesday, compared to a 19% drop for the larger S&P 500 Financials index The stock climbed 22% at 8:27 am at the start of trading in New York

The company also saw a surprise drop from a year earlier in its loan loss provisions, echoing its bigger rivals by absorbing a much smaller amount for credit losses The stock stood at just $ 278 million in the third quarter, up from $ 1 billion in the previous three months The decline was mainly related to loan repayments by businesses and consumers, Goldman said

Citigroup’s bond trading income jumped 18% from a year ago and its stock traders saw a 15% increase At JPMorgan, revenue from income trading Fixed rose 29% and stocks rose 32% Bank of America Corp missed the wave, posting a 36% rise below estimates

Goldman’s fees for helping secure deals for companies fell 27% to $ 507 million Underwriting income of $ 1 $ 43 billion beats average analysts’ estimate of $ 1.3 billion The deal Goldman’s mainstream hit $ 1 billion in 12-month revenue for the first time since launching four years ago

The company’s equity investments brought in gains of $ 1.4 billion, more than double that of a year earlier, as it benefited from the recovery in markets, according to a statement from the firm new -Yorkis Wednesday This generated a larger increase for the $ 3 billion public equity portfolio than the company’s $ 16 billion private equity portfolio

The bank’s loan portfolio has also remained healthy after a significant write-down at the start of the year Goldman is working to manage more of its clients’ money to generate regular recurring charges, although the strategy limits the big winnings that could come from betting more of your own money He’s getting close to raising around $ 14 billion for a new loan fund – the largest pool of investment cash he’s raised in over a decade

Goldman’s consumer deposits climbed at a slower pace than in the second quarter Its financial management arm saw a 3% decline in assets under management, mainly due to a decline in liquidity products

Net income nearly doubled from a year ago to $ 3.6 billion Earnings per share hit a record $ 9.68, far exceeding analysts’ estimates of $ 5.53

Goldman Sachs, Earnings, Financials, Stocks