Goldman Sachs (NYSE:GS) shares fell Tuesday after the firm reported third-quarter profit below Wall Street expectations.
The bank posted profit of $1.88 billion, or $4.79 a share, below the $4.81 expected by analysts. Revenue fell 6% to $8.32 billion, slightly above the $8.31 billion expected, on lower results in the firm’s investing and lending and investment banking divisions. The firm also set aside $291 million for credit losses in the quarter, 67% higher than a year earlier.
David Solomon has been CEO of Goldman Sachs for a full year, and it’s clear there’s still a lot of work to do.
"Our results through the third quarter reflect the underlying strength of our global client franchise and its ability to produce solid results in the context of a mixed operating environment," Solomon said in the earnings release.
"We continue to execute on our strategic priorities, including investing in important growth opportunities in our existing and new businesses."
Among its four main businesses, the bank’s investing and lending division missed expectations by the largest degree, despite those figures coming down in recent weeks. The division produced $1.68 billion in revenue, a 17% drop from a year earlier and below the $1.74 billion estimate.
Investment banking produced $1.69 billion in revenue, just under the $1.72 billion estimate. Investment management matched the $1.67-billion estimate.
GS shares began Tuesday’s trading down $6.23, or 3%, to $199.56
