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Goldman Sachs reported third quarter (Q3) 2018 earnings per common share of $6.28 up 25.1% compared with $5.02 during the same period last year, beating analysts’ expectations on Tuesday.
But despite a strong performance overall the bank’s fixed income, currency and commodities (FICC) unit saw revenues down 10% to $1.31 billion and falling shy of analysts $1.45 billion estimate.
The bank blamed the dip in FICC performance on ‘significantly lower net revenues in interest rate products and lower net revenues in credit products and mortgages’ and a financial climate characterised ‘by low client activity amid low levels of volatility’.
All in all, it was a solid set of results which saw Goldman’s Q3 18 net revenues climb 4% higher, hitting $8.65 billion with strong performances from various areas of the bank. But it was its investment banking unit that came out on top, contributing $1.98 billion of total revenues up 10% compared with a year ago.
‘We delivered solid results in the third quarter driven by contributions from across our diversified client franchise,’ CEO David Solomon said.
‘Year-to-date earnings per share is the highest in our history and year-to-date return on equity is the highest in nine years, notwithstanding our continued investment in growth opportunities. We remain well positioned to continue delivering for our clients and shareholders.'
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