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  • 10.18.16

Goldman Sachs flexes its trading muscle with strong third-quarter earnings

Goldman Sachs beat Wall Street’s third-quarter expectations today, announcing a 47% increase in earnings after its worst first half in CEO Lloyd Blankfein’s decade-long tenure. Fixed-income and bond trading helped lead the resurgence, with trading revenue overall up 17%. 

The firm’s return on equity, which had fallen to 7% at this time last year, jumped to 11.2%, a positive sign for a key profitability metric. 

Goldman is in the midst of a time of transition, as it looks to trim costs, manage risk in line with regulator demands, and exploit technology as a source of growth. Last week the firm launched an online lending product called Marcus, a retail banking product that it built from scratch. AH