GS: Goldman Sachs Posts 33% Profit Drop Dragged by Lossmaking Consumer Offering

The bank’s moneymakers – trading and investment banking – performed well despite analyst expectations for revenue declines.

• Goldman Sachs reported third-quarter earnings that surprisingly came in ahead of expectations. Despite a painful retreat from its lossmaking consumer banking push, Goldman notched $11.8bn in revenue. Analysts were eyeballing $11.2bn on weaker dealmaking activities for the quarter.
• Profit dropped a sizable 33% year-on-year to $5.47 a share, coming in at a total of $2.1bn. Goldman chief David Solomon, who recently gave up his infamous DJ side gig, praised the results. “We’re confident that the work we’re doing now provides us a much stronger platform for 2024,” he noted.
• Goldman Sachs stock tumbled 1.6% on its earnings day, closing the Tuesday session at $309.36 a share. Goldman joined a flurry of investment banks reporting their financials. Earlier this week, JPMorgan JPM posted a 35% profit jump. Bank of America BAC eclipsed expectations Tuesday and Morgan Stanley MS is up next today.