Mortgage

Goldman Sachs earnings beat expectations in third quarter

Boosted by higher net revenue from mortgages

Goldman Sachs reported higher net revenue in its third quarter earnings, driven in part by higher revenue from mortgages, which helped to offset losses in fixed income, currency and commodities client execution.

The company’s net revenue increased 6% from the second quarter’s $7.9 billion and 2% from $8.2 billion last year to $8.3 billion in the third quarter.

“Our overall performance this year has been solid and provides a good foundation on which to execute and deliver our growth initiatives,” said Lloyd Blankfein, Goldman Sachs chairman and CEO.

This increase was drug down in part by a decrease to $1.45 billion net revenue in fixed income, currency and commodities client execution, which was down 26% from the third quarter last year. The decrease was due to significantly lower net revenues in commodities, interest rate products and credit products and lower net revenues in currencies, but partially offset by higher net revenues in mortgages.

The company did not provide any additional detail on what drove the higher revenue in mortgages.

The company’s diluted earnings per common share increased 27% from last quarter’s 3.95% and 3% from $4.88 last year to $5.02 per share in the third quarter.

This was significantly higher than the predicted $4.31 per share, made by Zacks Investment Research, which is based on seven analysts’ forecasts.

Most Popular Articles

UWM now offering 15-year fixed mortgage rates as low as 1.875%

United Wholesale Mortgage announced Friday that it is rolling out a new loan program that offers borrowers an interest rate as low as 1.875% for both purchase mortgages and refinances.

Jul 31, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please