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In what currently counts as happy news for a battered Wall Street giant, Goldman Sachs on Tuesday reported a quarterly profit that was just above expectations, suggesting the bank may be on its way out of its slumps. consumer loan problems.
The bank’s third-quarter profit fell about a third from a year earlier, to $2.1 billion, although that drop was expected. Trading income remained stable, an encouraging sign given the slowdown in trading activities on Wall Street in the face of a possible recession. “We are confident that the work we are doing now will provide us with a much stronger platform for 2024,” the bank’s chief executive, David M. Solomon, said in a statement.
Has been a year to forget for Goldman and Mr. Solomon. The bank continues to write off losses stemming from its effort to build a Main Street-focused operation. an initiative that began under Goldman’s former CEO, Lloyd C. Blankfein, and accelerated under Solomon’s leadership.
Solomon has faced what amounts to a staff revolt, by the strict standards of a Wall Street bank, as dozens of prominent partners have left and others have complained about his inflexible management style.
Last week, Goldman kept his promise get rid of a “buy now, pay later” company, GreenSky, at a huge loss, which it had bought less than two years ago.
Other banks that have reported third-quarter earnings have shown a smooth path. On Tuesday, Bank of America reported a 10 percent increase in profits. Last week, JPMorgan Chase reported a 35 percent quarterly profit increase, while Wells Fargo and Citigroup beat analysts’ expectations.
Goldman shares were flat in premarket trading after the release of quarterly results. Shares are down 9 percent this year and about 25 percent from the all-time high set in 2021.
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