Global Economy
Goldman Sachs Smashes Q3 2012 Estimates on Robust Bond Trading, Higher Commissions
Goldman Sachs Group Inc. delivered a third-quarter 2012 earnings surprise, outperforming Wall Street consensus estimates on the back of resilient fixed income trading, rising commission revenue, and strong results in its private equity arm. The Wall Street giant managed to mitigate headwinds in bond markets, defying broader sector trends that had weighed on peers during the period.
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Goldman Sachs Exceeds Q3 2012 Earnings Expectations
Wednesday, October 17, 2012 – Bourse News
(Reuters) – Goldman Sachs Group Inc. reported third-quarter 2012 results that surpassed Wall Street consensus estimates, as the investment bank successfully contained losses in its fixed income trading division, boosted commission revenue, and delivered strong performance in its private equity (principal investing) business.
The better-than-expected results came as a positive surprise to analysts, who had forecasted weaker performance for the Wall Street giant amid volatile bond market conditions during the quarter. Goldman Sachs’ ability to limit downside in fixed income trading – a segment that had dragged down results for several peer institutions – was a key driver of the earnings beat.
Commission income also saw a notable uptick, contributing to the overall outperformance, while the bank’s capital investment arm (the unit responsible for private equity and direct investments) also posted solid returns, further bolstering quarterly profits.