Goldman Sachs reported a 26% decline in net earnings for the third quarter of 2019, compared to the same quarter last year
Image: Goldman Sachs Headquarters, New York City. Photo: Courtesy of Quantumquark/Wikipedia.org.
The Goldman Sachs Group has reported net earnings of $1.87bn, or $4.79 per diluted share, for the third quarter ended 30 September 2019, a 26% decrease compared to $2.52bn, or $6.28 per diluted share, for the same quarter of 2018.
Total revenues for the third quarter stood at $8.32bn, a 6% decrease compared to $8.82bn in the third quarter of 2018 and 12% lower than the second quarter of 2019.
The US-based bank said that the decrease in total revenues compared with the third quarter of 2018 primarily reflected lower net revenues in Investing & Lending and Investment Banking, partially offset by higher net revenues in Institutional Client Services.
Revenues generated from Investment Banking were $1.68bn in the third quarter of 2019, which fell from $1.86bn in the second quarter of this year and $1.9bn in the third quarter of 2018.
The Investment Management segment reported revenues of $1.55bn for the third quarter, a 2% decrease compared to $1.58bn for the same period last year.
Total operating expenses for the third quarter were $5.61bn, a 1% increase compared to $5.56bn for the corresponding period of 2018.
Increase in operating expenses was noted primarily in depreciation and amortisation, occupancy and other expenses. Higher brokerage, clearing, exchange and distribution fees reflect an increase in activity levels, the company said.
Net earnings applicable to common shareholders for the third quarter were $1.79bn, a 27% decrease compared to $2.45bn for the same quarter of 2018.
Goldman Sachs Group chairman and CEO comments on Q3 results
Goldman Sachs Group chairman and CEO David Solomon said: “Our results through the third quarter reflect the underlying strength of our global client franchise and its ability to produce solid results in the context of a mixed operating environment.
“We continue to execute on our strategic priorities, including investing in important growth opportunities in our existing and new businesses and in delivering for our clients in the most efficient and effective manner possible.
“We believe that this focus will best position the firm to generate long-term, industry-leading returns for our shareholders.”