Goldman Sachs announced quarterly earnings that fell short of expectations on Thursday, blaming “renewed concerns” about global growth for the shortfall.
Revenues fell to $6.86bn from $8.39bn a year ago. The bank had been expected to announce $7.13bn in revenue, according to consensus estimates from Thomson Reuters.
Goldman’s third-quarter net income fell to $1.43bn, or $2.90 a share, from $2.24bn, or $4.57 a share, a year earlier.
“We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth,” said Lloyd Blankfein, chairman and chief executive officer. “We continue to see strong levels of activity in Investment Banking and growth in Investment Management, and looking ahead, are encouraged by the competitive positioning of our global client franchise.”
The bank set aside $2.35bn for compensation and benefits for the third quarter of 2015, 16% lower than the third quarter of 2014.
Fixed income, currencies and commodities trading revenue fell 33% to $1.46bn for the quarter, while equities trading revenue increased 9% to $1.75bn.
Goldman is the latest US giant to announce disappointing results in this earnings season. Yesterday Walmart, the world’s largest retailer, also released results that fell short of expectations. It blamed rising wage costs and online competition for the shortfall.
Investors are awaiting a conference call with Blankfein. In September Blankfein announced he was suffering from a “highly curable” form of lymphoma. He is expected to give an update on his health.
This article was written by Dominic Rushe in New York, for theguardian.com on Thursday 15th October 2015 13.10 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010