Home Investing Goldman Sachs unveils revamp as third-quarter profit falls

Goldman Sachs unveils revamp as third-quarter profit falls

by admin
0 comment

October 18 (Reuters) – Goldman Sachs Group Inc. (GS.N) The Wall Street giant said Tuesday it will reorganize its operations into three units as it undergoes another overhaul within three years, but it also reported lower third-quarter earnings.

The bank will now have three business segments: wealth and wealth management, global banking and markets, and platform solutions. Goldman did not provide details about the executive who will lead the division.

The stock rose 2.5% to $314.50 in pre-market trading.

Register now for free, unlimited access to Reuters.com

The restructuring comes as investment banks look to boost revenues from fee-based businesses.

“It’s time to be cautious” about the economy, CEO David Solomon said in an interview with CNBC.

Banks close out a mixed quarter for the big US banks, where volatile capital markets and slowing economic growth have weakened investment banking.read more

Trading slowed in the quarter, casting a cloud over some of Goldman’s most profitable businesses. But rising borrowing costs pushed his net interest margin up 31%, and net interest income increased to soften the blow.

Earnings applicable to common stockholders decreased to $2.96 billion, or $8.25 per share, from $5.28 billion, or $14.93 per share, a year ago .

Analysts had expected earnings of $7.69 per share, according to Refinitiv data. It was not immediately clear whether the reported numbers matched the estimates.

Total revenue for the quarter was down 12% to $11.98 billion.

But in the face of the Federal Reserve’s aggressive rate hikes and the war in Ukraine, investors stepped up trading activity and backed banks’ fixed income, currencies and commodities sectors.

Goldman did not disclose plans for Marcus, its consumer banking arm, on Tuesday. reported, citing sources, that it will become part of a combined property and asset management division.

Register now for free, unlimited access to Reuters.com

Reported by Niket Nishant and Noor Zainab Hussain of Bangalore. Edited by Arun Koyyur

Our criteria: Thomson Reuters Trust Principles.

You may also like

Copyright ©️ All rights reserved. | Investors Radar