Goldman Sachs Reports Record Third-Quarter Revenues

Watch Goldman Sachs Reports Record Third-Quarter Revenues - Bloomberg on Dailymotion

Transcript

00:00Goldman Sachs really delivering on its traditional areas of strength, trading and investment banking.

00:04Investment banking revenue rose 43% year-over-year. Advisory revenue rose 60% year-over-year.

00:10And underwriting rose 21% for equities and up 30% for debt. Now, when you look at trading overall,

00:16there's a bit of a wrinkle when you break it down into asset classes. For FIC, fixed income

00:20currencies and commodities, that rose 17% to $3.47 billion, handily beating the average analyst

00:26estimate. But the equities trading rose 7% and then missed the consensus estimate by about $200

00:32million, $3.74 billion reported for the quarter. Goldman also set aside less money for bad loans

00:39for the quarter, setting aside $339 million versus the consensus estimate of almost $370 million.

00:45In addition, for these big banks, their biggest expense is compensation. And operating expenses

00:52did increase 14% year-over-year. More than anticipated, compensation expenses rose

00:56by the same amount, 14%, more than anticipated as well. One thing to keep in mind with Goldman,

01:02of course, is that it is the most exposed big bank to investment banking revenue. So it'll have

01:07the fastest response among all these different firms that we track to recession risks or any kind

01:11of erosion or deterioration in market conditions. But for now, this looks like a solid number,

01:16especially on the investment banking side.