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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Goldman Sachs earnings results exceed estimates, fixed income sales slump

The bank posted strong third quarter earnings, but fixed income revenues see 10% decline.

Goldman Sachs
Source: Bloomberg

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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