Goldman Sachs attributed the rise in its net earnings to stable equity markets, high yields from government bonds, and range-bound volatility


Goldman Sachs Tower at 30 Hudson Street in Jersey City. (Credit: Beyond My Ken/Wikipedia.)

Goldman Sachs has reported a net profit of $5.2bn, or $14.93 per diluted share, for the third quarter (Q3) of 2021, a 63% rise compared to $3.2bn or $8.98 per diluted share for the same quarter in 2020.

The firm has reported total net revenue of $13.6bn for Q3 2021, an increase of 26% compared to $10.7bn for the corresponding period last year.

Goldman Sachs’ total operating expenses for the reported period were $6.5bn, a 6% rise compared to $6.2bn for the same quarter in 2020.

The investment banking firm attributed the rise in its net earnings to stable equity markets, high yields from government bonds, and range-bound volatility.

Goldman Sachs chairman and CEO David Solomon said: “The third quarter saw strong operating performance and an acceleration of our investment in the growth of Goldman Sachs.

“We announced two strategic acquisitions in our Asset Management and Consumer businesses which will enhance our scale and ability to drive higher, more durable returns.

“Looking forward, the opportunity set continues to be attractive across all of our businesses and our focus remains on serving our clients and executing our strategy.”

In a separate development, Goldman Sachs has secured the China Securities Regulatory Commission (CSRC) approval to assume full ownership of Goldman Sachs Gao Hua Securities Company Limited (GSGH).

GSGH was established in 2004, as a Joint Venture (JV) between Goldman Sachs and Beijing Gao Hua Securities Company.

In March last year, the bank has received the CSRC approval to increase its ownership stake in GSGH from 33% to 51%.

The investment bank said that it will acquire the remaining equity interest in GSGH, which it does not currently own.

With the full ownership of GSGH, it is enabled to strengthen its position in the Chinese market under a single, wholly-owned entity, and will be renamed Goldman Sachs (China) Securities Co.

The bank, in a statement, said: “As we continue to invest in our China franchise, we would like to take this opportunity to thank everyone involved in the application and migration processes for their extraordinary effort put into achieving this milestone, as well as the people who have contributed to the success of our China business over the years.”