Goldman Sachs Q3 Profit Beats Estimates; Net Revenues Up 26%

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The Goldman Sachs Group, Inc. (GS) reported that its third quarter net earnings applicable to common shareholders increased 63 percent year-on-year. Net revenues were also significantly higher reflecting significantly higher net revenues in Investment Banking, Global Markets and Consumer & Wealth Management, partially offset by lower net revenues in Asset Management. Investment Banking reported its second highest quarterly net revenues, reflecting record quarterly net revenues in Financial advisory and continued strength in Underwriting.

Third quarter earnings per common share was $14.93 compared to $8.98, prior year. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $10.11, for the quarter. Analysts' estimates typically exclude special items. Net earnings applicable to common shareholders increased to $5.28 billion from $3.23 billion.

Net revenues were $13.61 billion for the third quarter, 26% higher than prior year. Analysts expected revenue of $11.67 billion, for the quarter. Net revenues in Investment Banking were $3.70 billion for the third quarter, 88% higher than a year ago. Net revenues in Global Markets were $5.61 billion, 23% higher than last year.

Net revenues in Asset Management were $2.28 billion for the third quarter, 18% lower than last year. The company said the decrease was primarily driven by significantly lower net revenues in Equity investments.

On October 13, the company's Board declared a dividend of $2.00 per common share to be paid on December 30, 2021 to common shareholders of record on December 2, 2021.

Shares of The Goldman Sachs Group were up 2% in pre-market trade on Friday.

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