Goldman Sachs 3Q Profits Fall 33%: Associated Press

Goldman Sachs witnessed a 33% drop in its third-quarter earnings, as the investment bank faced subdued market conditions that allowed for fewer deals and market-making opportunities, Ken Sweet reported for the Associated Press (AP).

Despite the figures, David Solomon, the bank's chairman, and CEO expressed confidence that the work the bank is doing will provide a stronger platform for 2024. I Photo: Goldman Sachs Facebook

The bank also experienced a significant increase in expenses during the quarter, as it had to write down its investment in the lending platform GreenSky and its real estate investments.

The New York-based firm posted earnings of $2.06 billion, or $5.47 per share, down from a profit of $3.07 billion, or $8.25 per share, in the same period a year ago.

Analysts had low expectations for Goldman in this quarter, given sluggish markets and the firm's earlier announcement this year that it was discontinuing its nascent consumer lending business.

The bank is divesting its GreenSky business, which it had to write off this quarter. "We're confident that the work we're doing now provides us with a much stronger platform for 2024," said David Solomon, chairman, and CEO, in a statement.

Goldman has faced challenges in the past year, as fewer businesses have sought to engage in deals amid higher inflation and geopolitical uncertainty, and market conditions have been more challenging this year compared to last.

The bank saw a 1% increase in investment banking revenues from last year, while its trading business in bonds, currencies, and commodities was down 6% in the period. Equities trading, however, was up 8%.

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