Summary
Goldman Sachs Group, Inc. (GS) reported its third-quarter 2019 results with net earnings of $1.88 billion, a decrease of 26% year-over-year, and diluted EPS of $4.79, down 24%. This decline was primarily driven by lower net revenues in Investing & Lending and Investment Banking, due to weaker performance in equity securities and financial advisory, respectively. While Institutional Client Services saw improved net revenues, particularly in FICC Client Execution, it was not enough to offset the overall decline. The firm continued to return capital to shareholders, repurchasing $673 million of common stock and paying $466 million in dividends during the quarter. Goldman Sachs maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 13.4% under the Advanced Capital Rules as of September 30, 2019.
Financial Highlights
36 data points| Interest Expense | $4.45B |
| Net Income | $1.88B |
| EPS (Basic) | $4.83 |
| EPS (Diluted) | $4.79 |
| Shares Outstanding (Basic) | 370.00M |
| Shares Outstanding (Diluted) | 374.30M |
Key Highlights
- 1Net earnings of $1.88 billion for Q3 2019, down 26% year-over-year, reflecting broader market headwinds.
- 2Diluted EPS of $4.79, down 24% year-over-year, indicating reduced profitability on a per-share basis.
- 3Net revenues declined 6% to $8.32 billion, primarily due to weaker performance in Investing & Lending and Investment Banking.
- 4Investing & Lending segment saw a significant drop in net revenues, down 17% to $1.68 billion, largely driven by lower gains in equity securities.
- 5Investment Banking segment's net revenues decreased by 15% to $1.69 billion, impacted by lower advisory and underwriting fees.
- 6Institutional Client Services showed resilience with a 6% increase in net revenues to $3.29 billion, driven by solid client activity in FICC Client Execution.
- 7Strong capital position maintained with a CET1 ratio of 13.4% as of September 30, 2019, well above regulatory minimums.