Goldman Walls Record Profit in Bumper Quarters for Wall St. Investment Banking

Goldman Sachs reports that it is tracking for record full-year profits, limiting one week of bank earnings where Wall Street firms have raised billions of dollars from a dealmaking boom.

On Friday, the U.S. donor reported a third-quarter earnings per share of 14.93 on a total net income of $ 5.4bn. According to data compiled by Bloomberg, it rose to 3.4bn a year ago and lost its forecast of 7 3.7bn.

The group’s revenue was $ 13.6bn, up from $ 10.8bn a year ago and আগে 11.6bn before analysts agreed. Investment banking has boosted growth, to 3.7 billion.

Overall, Goldman earned .. 46.7 billion and প্রথম 17.7 billion in the first nine months of 2021, more than at any other time in the bank’s history.

Investment banks are raising a record amount of money from fees for corporate deals, private equity purchases and extensive dealmaking of initial public offerings.

Shares of Goldman, which rose more than 80 percent last year, rose nearly 2 percent in morning trading in New York.

Analysts at Oppenheimer described the quarter as “literally off the chart” for Goldman, with quarterly earnings per share exceeding even the most optimistic forecast.

The open question for Goldman is how good such sustainable blockbuster results are for the bank. “No one expects the environment to continue,” said Chris Kotowski of Oppenheimer.

“That said, with the Fed printing অর্থ 120 billion in new money every month, there’s plenty of monopoly money to play with every CEO in the world. So M&A and investment spending and capital raising are likely to remain strong, ”Kotowski said.

The quarterly investment banking dynamics were particularly conducive to Goldman’s franchises. According to referential data, about .6.6 percent of the fees were for merger and acquisition advisors, for which Goldman earned more than any other bank in 2021.

Advisory fees were three times higher at b 1.b billion than in the same quarter last year. Fees from equity and debt underwriting increased by 100 percent and 27 percent, respectively.

“Strong operating performance in the third quarter and the growth of our investment in Goldman Sachs have accelerated,” Goldman CEO David Solomon said in a statement.

Goldman limits a bumper earning season to investment banking revenue across Wall Street. Rival JP Morgan Chase’s investment banking revenue rose 52 percent to 3 3.3 billion, while investment banking fees at Morgan Stanley rose 67 percent to 9 2.9 billion.

Wall Street Bumper Investment Banking Quarter Shows ব্যাংক 6 Billion Investment Banking Income Line Chart

Bank of America’s investment banking revenue rose 23 percent to 2 2.2 billion. At Citigroup, they rose 39 percent to 9 1.9 billion.

Trading revenue in Goldman’s market segment rose 23 percent year-on-year to 5. 5.6 billion.

In early 2020, Goldman outlined plans on its first investor day to focus on consumer and transaction banking so that it would be less dependent on its trading and investment banking.

Revenue in the consumer and asset management unit, which includes its online bank Marcus and its Apple credit card, rose 355 percent to $ 2bn, up from analysts’ forecasts of $ 1.8bn.

Goldman had a 22.5 percent annual return on equity in the quarter before the mid-term target of 14 percent set for 2020.

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