Goldman Sachs Earnings Impress Wall Street

Goldman Sachs flourished despite shares plummeting in the first half of 2022. The environment for banks has been particularly challenging. Rivals JPMorgan Chase ( JPM ) and Morgan Stanley ( MS ) reported earnings last week that missed forecasts. Bank of America ( BAC ) posted earnings and revenue that missed expectations on Monday as well. But Goldman Sachs was helped by a boost in its massive bond trading unit. Revenues for fixed income trading rose as yields rose thanks to interest rate hikes by the US Federal Reserve. Goldman Sachs also said its consumer and wealth management unit, which includes digital bank Marcus, posted record revenue of nearly $2.2 billion in the quarter, up 25 percent from the same period last year. “Despite heightened volatility and uncertainty, I remain confident in our ability to navigate the environment,” Goldman Sachs CEO David Solomon said in the bank’s press release. Banks are also in much healthier financial shape now than they were during the 2008 Global Financial Crisis and the Great Recession. The top U.S. financial firms all passed the Fed’s latest stress tests, which measure how well banks will be able to weather any future economic and market adversity. Many big banks increased their dividends after the stress test results. Goldman Sachs increased its quarterly returns by 25%. Despite this, shares of Goldman Sachs are still down more than 20% this year. And the broader market’s struggles were bad news for Goldman Sachs employees. The bank said Monday that compensation and benefits expenses, the so-called bonus pool, fell more than 30 percent from a year ago.

title: “Goldman Sachs Earnings Impress Wall Street " ShowToc: true date: “2022-11-05” author: “Sandy Gilbert”

Goldman Sachs flourished despite shares plummeting in the first half of 2022. The environment for banks has been particularly challenging. Rivals JPMorgan Chase ( JPM ) and Morgan Stanley ( MS ) reported earnings last week that missed forecasts. Bank of America ( BAC ) posted earnings and revenue that missed expectations on Monday as well. But Goldman Sachs was helped by a boost in its massive bond trading unit. Revenues for fixed income trading rose as yields rose thanks to interest rate hikes by the US Federal Reserve. Goldman Sachs also said its consumer and wealth management unit, which includes digital bank Marcus, posted record revenue of nearly $2.2 billion in the quarter, up 25 percent from the same period last year. “Despite heightened volatility and uncertainty, I remain confident in our ability to navigate the environment,” Goldman Sachs CEO David Solomon said in the bank’s press release. Banks are also in much healthier financial shape now than they were during the 2008 Global Financial Crisis and the Great Recession. The top U.S. financial firms all passed the Fed’s latest stress tests, which measure how well banks will be able to weather any future economic and market adversity. Many big banks increased their dividends after the stress test results. Goldman Sachs increased its quarterly returns by 25%. Despite this, shares of Goldman Sachs are still down more than 20% this year. And the broader market’s struggles were bad news for Goldman Sachs employees. The bank said Monday that compensation and benefits expenses, the so-called bonus pool, fell more than 30 percent from a year ago.