Goldman Sachs Profits Up Almost 50% on Higher Advisory Fees

Goldman Sachs announced a profit increase Tuesday due to greater fees for debt underwriting and asset management, as well as strong results in some major trading areas.

The New York financial powerhouse posted $2.8 billion in third-quarter profits, up 48 percent from the same period last year.

Strong areas included loan underwriting for clients with investment-grade credit ratings, while considerably greater revenues in stock trading compensated for declines in fixed income, currencies, and commodities trading.

Increased assets under management resulted in higher asset management fees for the firm, as did an increase in the value of Goldman’s private and public shares over the prior year.

However, $397 million in provisions for credit losses, which reflect credit card charge-offs, dragged down Goldman’s profits.

Goldman Sachs CEO David Solomon stated that the results demonstrated the “strength of our world-class franchise” in servicing clients against “a complex backdrop.”

In pre-market trade, shares climbed by 2.9%.

 

 

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