Early Access

10-QPeriod: Q3 FY2010

GOLDMAN SACHS GROUP INC Quarterly Report for Q3 Ended Sep 30, 2010

Filed November 9, 2010For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

Goldman Sachs Group Inc. (GS) reported its third-quarter 2010 results, showing a decrease in diluted earnings per common share to $2.98 from $5.25 in the prior year's quarter. This decline was primarily driven by significantly lower net revenues in the Trading and Principal Investments segment, particularly in Fixed Income, Currency, and Commodities (FICC) and Equities, due to challenging market conditions and reduced client activity compared to a strong prior-year period. While Asset Management and Securities Services revenues saw a slight decrease, Asset Management's revenue grew due to higher fees, though overall assets under management declined due to net outflows. Investment Banking revenues, however, showed a significant increase, driven by higher Financial Advisory and debt underwriting activities, offsetting a decline in equity underwriting. The firm maintained a strong capital position, with its Tier 1 capital ratio at 15.7%, reflecting a prudent approach to liquidity and risk management despite a more subdued market environment for certain business lines. The report also details ongoing legal and regulatory matters, including settlements related to mortgage-related activities and the ABACUS CDO offering, which impacted expenses.

Financial Highlights

29 data points
Beta

Net Income

$1.90B

EPS (Diluted)

$2.98

Total Assets

$908.68B

Free Cash Flow

$676.00M

Financial Statements
Beta
Net Income$1.90B
EPS (Basic)$3.19
EPS (Diluted)$2.98
Shares Outstanding (Basic)541.20M
Shares Outstanding (Diluted)582.70M

Key Highlights

  • 1Diluted earnings per common share decreased to $2.98 from $5.25 in the prior year's quarter.
  • 2Net revenues in Trading and Principal Investments declined significantly, down 36% year-over-year, impacted by FICC and Equities.
  • 3Investment Banking revenues increased 24% year-over-year, driven by Financial Advisory and debt underwriting.
  • 4Assets under management in Asset Management decreased to $823 billion from $848 billion due to net outflows, despite market appreciation.
  • 5The firm maintained a strong Tier 1 capital ratio of 15.7% as of September 30, 2010.
  • 6Operating expenses decreased by 20% year-over-year, primarily due to lower compensation and benefits.
  • 7The company incurred $550 million in SEC settlement charges related to mortgage-related activities.

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