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Goldman Investment Banking Shines

The division showed relative strength as Goldman beat estimates.
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Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. Report

earned $2.98 per share for the third quarter, handily topping

Thomson Reuters

analyst estimates of $2.32.

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Despite touting, "solid performances across our businesses," Goldman CEO and Chairman Lloyd Blankfein stated in a press release that "economic conditions continue to be challenging in a number of markets."

Investment banking appeared to be an important driver of the beat. Revenues in the division of $1.12 billion were 24% higher than the third quarter of 2009, and up 22% from the second quarter of this year.

Nonetheless, one negative signal looking ahead is that the backlog of deals is "essentially unchanged" compared with the second quarter, according to Goldman's press release.

As usual, trading and principal investments accounted for the largest share of revenues: $6.38 billion of the total $8.9 billion in the quarter. Still, that figure was 36% lower than a year ago and 3% below last quarter's number.

Asset management, which Goldman hopes will be an important part of its post-crisis future, turned in revenues of $1.4 billion, 3% lower than a year ago and 2% higher than last quarter.


Written by Dan Freed in New York


Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.