Goldam Sachs Group Inc. G.S. -1.55%
Third-quarter profits nearly doubled, with the latest confirmation that Wall Street could still make money despite the epidemic and recession.
Goldman posted a quarterly profit of. 62.6 billion, or 6 9.68 billion, on earnings of .7 78.7862 billion. Both measures were better than the expectations of stock analysts, who forecast 3 1.94 billion or 5. 5.54 per share on revenue of 3 9.38 billion. Goldman posted a profit of 1. 1.88 billion, or $ 4.79, in the third quarter of 2019.
There is concern that the coronavirus may be infected in the U.S. in 2008. Will compete as a threat to the financial system, has just subsided. Banking trading fees have increased. Bond investors’ appetite has allowed companies to borrow billions from banks in emergency loans this spring and allow them to repay them. Large corporate bankruptcy has become apparent.
The pain can still go away, especially if unemployment remains high and a resurgence in the virus sparks a new or harder lockdown. But unlike the crisis of 2008, when banks lost millions of dollars, today’s lenders are still in black. And they are not facing the same investor panic that caused the deadly bank to run during the last time.
JPMorgan Chase & Co. Profits doubled in the second quarter and were up 4% from a year earlier, while the U.S. economy was booming. After raising about 19 19 billion earlier this year as a cushion for expected loan defaults, the bank only modestly increased that number in the quarter. Bank of America Corpo.
And Citigroup Inc.
Were profitable even though less than a year ago.
Goldman has been facing a relatively simple crisis so far. Efforts by the Federal Reserve to support the markets have allowed the firm to move loans and cut fees from its books by buying and selling securities. With JPMorgan’s nearly 1 1 trillion to ઓછી 112 billion low-credit book as of September 30, it is less open by default.
Trade revenue rose 29% to 4. 55.455 billion from a year earlier. The company’s investment bankers brought in ર 43 1.43 billion in underwriting fees, up 60% from a year earlier due to an increase in public companies, which offset the decline in merger fees. And Goldm’s own equity portfolio with the stock market.
Goldman has set aside 27 8,278 million for loan losses, as part of the higher-than-expected charges on its new credit-card business. But, it was less than a fifth of what it determined in the second quarter.
The bank’s return on equity, a measure of how much it benefits shareholders’ money, was the highest since 2010. And raising the level of capital above the new minimum level set this month has got a breathing room with regulators.
The results of the big commercial banks gained momentum as they set aside less money for potential loan losses as they show an abundance of rosary outlook or caution in the spring.
However, without taking new stimulus measures, including the expansion of unemployment benefits, officials warned that losses could increase. JPMorgan’s James Dimon said on Tuesday that the country was still at risk of a double-dip recession, which would cost his bank an additional 20 20 billion in loan losses.
Coronavirus recession sets a troublesome background for something already becoming a high wire act for Goldm not. In the early innings of the Wall Street Pay firm’s main goal of the year, chief executive David Solomon hopes to raise revenue, make it less vulnerable to market trends and pull its share price into a stream of side effects over the years.
Some of these moves are unreliable by the recession – and may even be helped by it, such as plans to raise 100 100 billion in new private equity funds by 2025. Investment deals will come out of economic weakness. And with interest rates likely to remain close to zero for years to come, investors are turning to complex and opaque investments that offer higher returns.
Others, however, seem risky with a cool economy. Goldm’s new consumer bank specializes in unsecured loans and credit cards, a type of bill that is often unpaid in times of financial crisis and is not supported by collateral. That business, for now, looks good: revenue rose 50% from a year ago to 32 326 million.
The resolution to probe Malmia’s long-term dealings with investment funds is a cloud still hanging over the firm. Earlier this year, it agreed to pay the Malaysian government 9.9 billion, and the Wall Street Journal reported that the U.S. Talks are underway with the Justice Department, which could reach a top 3 billion.
The firm has set aside $ 3.15 billion to cover all its pending lawsuits and regulatory matters, a number that was not significantly added in the third quarter.
Write to Liz Hoffman at [email protected]
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