Goldman Sachs Group (GS) shares jumped larger Tuesday after the funding financial institution posted firmer-than-expected third quarter earnings, declared a $2.50 dividend and unveiled plans to restructure its 4 enterprise divisions.
Goldman stated earnings for the three months ending in September have been pegged at $8.25per share, down 44.7% from the identical interval final yr however firmly forward the Street consensus forecast of $7.69 per share. Group revenues, Goldman stated, fell 12% to $11.98 billion, however once more topped analysts’ forecasts of an $11.41 billion whole.
Investment banking revenues fell 57% from final yr to $1.58 billion, Goldman stated, however that partly offset by a a agency enhance in international markets revenues, which have been up 10.5% at $6.2 billion.
Goldman additionally unveiled reported plans to restructure is enterprise reporting into three separate divisions — down from 4 — that embody asset and wealth administration, international banking and markets and platform options.
“Goldman Sachs’ third quarter results reflect the strength, breadth and diversification of our global franchise,” said CEO David Solomon. “Against the backdrop of uncertainty and volatility in the markets, we continue to prudently manage our resources and remain focused on risk management as we serve our clients. Importantly, we are confident that our strategic evolution will drive higher, more durable returns and unlock long-term value for shareholders.”
“In January 2020, we outlined our strategy in clear and direct terms, introducing a plan to grow and strengthen our core businesses, diversify our products and services, and operate more efficiently as we drive higher, more durable returns,” he added. “Today, we enter the next phase of our growth, introducing a realignment of our businesses that will enable us to further capitalize on the predominant operating model of One Goldman Sachs as we better serve our clients.”
Goldman Sachs shares have been marked 2.93% larger in late-morning buying and selling following the earnings launch to vary arms at $315.70 every.