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The
Wall Street bank said on Thursday its net income applicable to
common shareholders fell 38 percent, to $1.33 billion, or $2.90
per share, from $2.14 billion, or $4.57 per share, a year
earlier. (http://bit.ly/1OEqKQi)
Analysts on average had expected earnings of $2.91 per share for
the third quarter ended Sept. 30, according to Thomson Reuters
I/B/E/S.
Goldman said revenue from fixed-income, currency and commodity
trading (FICC), fell 33 percent to $1.46 billion.
"We experienced lower levels of activity and declining asset
prices during the quarter, reflecting renewed concerns about
global economic growth," CEO Lloyd Blankfein said in a statement
released along with the results on the company's website.
Excluding adjustments, revenue would have fallen 27 percent.
Goldman joins JPMorgan Chase & Co <JPM.N> and Bank of America
Corp <BAC.> in reporting a drop in revenue from bond trading.
Both banks said FICC revenue fell about 11 percent.
Goldman executives have stressed the bank's commitment to
trading, even as other banks have pulled back or exited to focus
on less-volatile businesses that require less capital.
New rules aimed at improving stability in the banking sector
also discourage banks from trading off their own balance sheets.
Still, FICC contributed just 21.3 percent to revenue in the
latest quarter, compared with about 40 percent at the peak.
One bright spot was investment banking.
Goldman, whose shares were down 1.3 percent in premarket
trading, said revenue in its investment banking unit, which
underwrites debt and stock offerings and advises on deals, rose
6.3 percent to $1.56 billion.
(Reporting by Richa Naidu and Sruti Shankar in Bengaluru;
Editing by Ted Kerr)
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