Goldman Sachs Smashes Q3 Earnings Forecast on Trading Revenue Surge

Goldman's third quarter credit loss provisions fell to just $278 million, echoing a trend set by Wall Street rivals JPMorgan and Citigroup.

Goldman Sachs Group Inc.  (GS) - Get Report posted much stronger-than-expected third quarter earnings Wednesday as trading revenues smashed forecasts and credit provisions tumbled. 

Goldman Sachs said profits for the three months ending in September were pegged at $9.68 per share, more than double the $4.79 posted over the same period last year and well ahead of the Street consensus forecast of $5.57 per share. Group revenues, Goldman said, rose 30% to $10.78 billion, smashing analysts' estimates of a $9.46 billion tally.

Goldman's third quarter credit provisions were $278 million, down from $1.59 billion in the three months ending in June, while investment banking revenue was $1.97 billion, a 7% increase from the same period last year. Equities trading revenues jumped 10% to $2.05 billion while wealth management revenues rose 13% to $1.49 billion, Goldman said.

“Our ability to serve clients who are navigating a very uncertain environment drove strong performance across the franchise, building off a strong first half of the year," said CEO David Solomon. "As our clients begin to emerge from the tough economy brought on by the pandemic, we are well positioned to help them recover and grow, particularly given market share gains we’ve achieved this year.”  

Goldman Sachs shares were marked 0.6% higher in early trading immediately following the earnings release to  change hands at $217.05 each, a move that bumped its six-month gain to around 21.5%.

JPMorgan  (JPM) - Get Report and Citigroup  (C) - Get Report both posted Street-beating earnings on Tuesday, with the pair also booking loan loss provision figures that were much lower than analysts had expected.

JPMorgan's total was just $611 million, while Citigroup's was pegged at $2.3 billion, well south of the $7.9 billion booked in the previous quarter.