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Following a weaker-than-expected Q2 earnings report, Goldman Sachs came back with a vengeance in Q3. The iconic US investment bank posted third-quarter earnings per share of $9.68. The figure obliterated estimates for a $5.54 EPS.
Revenues were also higher than expected at $1078 billion, versus estimates of $9.45 billion. Revenues rose 30% on the same quarter a year earlier while the EPS beat marks a new quarterly record.
Reduced Credit Loss Provisions
As we have seen with other leading US banks, Goldman had set aside a sizeable amount for expected credit losses, linked to the pandemic. However, the figure was reduced over Q3 amidst the ongoing economic recovery. Goldman held just $278 million in buffer capital, down from $291 million a year earlier and the mammoth $1.59 billion in Q2.
Commenting on the bank’s operations over the period, the firm’s CEO David Solomon said:
“Our ability to serve clients who are navigating a very uncertain environment drove strong performance across the f...
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