Economic news

Goldman Sachs profit jumps 45% on investment banking strength

2024.10.15 07:40

(Reuters) – Goldman Sachs’ profit jumped 45% in the third quarter as the investment bank benefited from a rebound in dealmaking.

It joined JPMorgan Chase (NYSE:), which also gained from an investment banking revival, as corporate clients became more confident in the economic outlook, spurring debt and equity offerings.

“Our performance demonstrates the strength of our world-class franchise in an improving operating environment,” CEO David Solomon said in a statement. Goldman shares rose 1.5% before the market open.

Goldman’s investment banking fees jumped 20% to $1.87 billion. Leveraged finance, which refers to loans made to risky ventures like funding buyouts, and investment-grade activity powered a jump in debt underwriting.

Equity underwriting also fetched higher revenue, thanks to a slew of secondary share sales. Revenue from fixed income, currency and commodities (FICC) trading fell 12%, while equities trading jumped 18%.

The bank, however, booked $397 million in provisions for credit losses compared with $7 million a year ago, driven by higher charge-offs in its credit card portfolio.

Goldman continues to take a hit from its ill-fated consumer business two years after stepping back from it. The company has since shifted its focus back on traditional mainstays of investment banking and trading.

Total profit was $2.99 billion, or $8.40 per share, for the three months ended Sept. 30, compared with $2.06 billion, or $5.47 per share, a year ago.

Goldman also benefited from easier comparisons with the year earlier, when it took sizeable writedowns on the consumer business and real estate investments.

© Reuters. FILE PHOTO: The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly/File Photo

The bank is exiting its credit card venture with automaker General Motors (NYSE:), which has signed a deal with Barclays.

JPMorgan is in talks to replace Goldman as tech behemoth Apple (NASDAQ:)’s credit-card partner.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 103,152.64 0.65%
ethereum
Ethereum (ETH) $ 2,338.30 6.95%
tether
Tether (USDT) $ 1.00 0.00%
xrp
XRP (XRP) $ 2.36 2.63%
bnb
BNB (BNB) $ 639.89 2.35%
solana
Solana (SOL) $ 172.83 6.80%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.205811 5.78%
cardano
Cardano (ADA) $ 0.782214 3.13%
tron
TRON (TRX) $ 0.26085 1.88%
staked-ether
Lido Staked Ether (STETH) $ 2,336.18 7.39%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 103,154.64 0.57%
sui
Sui (SUI) $ 3.92 1.77%
chainlink
Chainlink (LINK) $ 16.06 1.63%
avalanche-2
Avalanche (AVAX) $ 23.17 5.81%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,807.28 6.84%
stellar
Stellar (XLM) $ 0.295757 2.42%
shiba-inu
Shiba Inu (SHIB) $ 0.000015 5.44%
hedera-hashgraph
Hedera (HBAR) $ 0.202701 3.82%
hyperliquid
Hyperliquid (HYPE) $ 24.94 8.46%
the-open-network
Toncoin (TON) $ 3.28 1.44%
bitcoin-cash
Bitcoin Cash (BCH) $ 408.91 2.67%
leo-token
LEO Token (LEO) $ 8.75 1.76%
usds
USDS (USDS) $ 1.00 0.01%
litecoin
Litecoin (LTC) $ 99.94 5.66%
polkadot
Polkadot (DOT) $ 4.81 8.70%
weth
WETH (WETH) $ 2,337.95 7.38%
monero
Monero (XMR) $ 315.01 6.53%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,494.88 7.48%
bitget-token
Bitget Token (BGB) $ 4.49 0.35%
pepe
Pepe (PEPE) $ 0.000012 7.43%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.06%
pi-network
Pi Network (PI) $ 0.730472 13.81%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 103,082.62 0.60%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.12%
whitebit
WhiteBIT Coin (WBT) $ 30.33 0.25%
uniswap
Uniswap (UNI) $ 6.34 7.35%
bittensor
Bittensor (TAO) $ 426.62 1.31%
near
NEAR Protocol (NEAR) $ 2.91 8.48%
dai
Dai (DAI) $ 1.00 0.05%
aptos
Aptos (APT) $ 5.52 1.66%
okb
OKB (OKB) $ 53.84 1.88%
ondo-finance
Ondo (ONDO) $ 1.01 4.46%
aave
Aave (AAVE) $ 210.70 2.98%
susds
sUSDS (SUSDS) $ 1.05 0.02%
crypto-com-chain
Cronos (CRO) $ 0.102343 3.73%
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00 0.00%
ethereum-classic
Ethereum Classic (ETC) $ 19.15 3.99%
internet-computer
Internet Computer (ICP) $ 5.43 4.98%
official-trump
Official Trump (TRUMP) $ 14.43 15.08%