Goldman Sachs Q3 earnings beat, fueled by markets strength, wealth management

Goldman Sachs (NYSE:GS) stock jumped 3.4% in Tuesday premarket trading after Q3 earnings beat the Wall Street consensus by a wide margin as net interest income increased.

Global Banking & Markets revenue included strong performance in equities and record quarterly net revenue in Fixed Income, Currency & Commodities financing. Asset & Wealth Management revenue benefited from record quarterly management and other fees.

Q3 GAAP EPS of $8.40, topping the $6.92 consensus, fell from $8.62 in Q2 and $5.47 in last year’s Q3. Total net revenue of $12.7B, beating the average analyst estimate of $11.8B, was flat with the previous quarter and edged down from $11.8B a year ago.

Q3 net interest income of $2.62B, beating the Visible Alpha consensus of $1.95B, climbed from $2.24B in Q2 and $1.55B in Q3 2023.

Provision for credit losses of $397M, vs. the $413.6M Visible Alpha estimate, rose from $282M in the prior quarter and $7M a year ago.

Total operating expenses of $8.32B, higher than the Visible Alpha estimate of $8.07B, declined from $8.53B in Q2 and $9.05B in last year’s Q3. Compensation and benefits expense of $4.12B dropped from $4.24B in the prior quarter and $4.19B a year ago.

Loans of $192B at Sept. 30, 2024, increased from $184B at June 30. Deposits of $445B grew from $433B at the end of Q2.

Headcount totaled 46,400, vs. 44,30 at the end of Q2.

Global Banking & Markets net revenue of $8.55B increased 5% Q/Q and 7% Y/Y. Investment banking fees of $1.87B rose 20% Y/Y, reflecting strength in debt underwriting and higher net revenue in equity underwriting. FICC net revenue of $2.96B slid 7% Q/Q and 12% Y/Y. Equity revenue of $3.50B climbed 10% Q/Q and 18% Y/Y, primarily reflecting significantly higher net revenues in equities intermediation in both derivatives and cash products.

Asset & Wealth Management net revenue of $3.75B slipped 3% Q/Q and climbed 16% Y/Y; management and other fees totaled $2.62B increased 3% Q/Q and 9% Y/Y.

Platform Solutions net revenue of $391M sank 42% Q/Q and 32% Y/Y.

Conference call at 9:30 AM ET.

Earlier, Goldman Sachs GAAP EPS of $8.40 beats by $1.48, revenue of $12.7B beats by $940M