Goldman Sachs’ share price flopped in early morning trading, even after the investment bank’s third-quarter earnings and revenue smashed analysts’ expectations.
Shares in the New York-based investment bank opened around two per cent down on last night’s closing price of $177.42.
Net earnings for the three months ended September 30 came in at $2.24bn, a 48 per cent rise on earnings of $1.52bn for the same period last year and a 10 per cent rise on the $2.04bn recorded in June.
Total net revenue was up 25 per cent to $8.39bn, rising from $6.72bn for the same period last year.
Analysts at Thomson Reuters had predicted revenue of $7.8bn.
Chairman and chief executive Lloyd C. Blankfein said:
The combination of improving economic conditions in the US and a strong global franchise continued to drive client activity across our diverse set of businesses.While conditions and sentiment can shift quickly, the strength of our transaction backlog indicated our clients’ desire to pursue and execute their strategic plans for growth.
Goldman’s results were boosted by a revival in fixed-income, currencies and commodities trading revenue, which rose 74 per cent from a year earlier to $2.17bn.