Goldman Sachs Bond Trading Revenue Plunges 40 %
Hey monkeys,
Recently, Goldman Sachs reported a 40% drop in bond trading revenue, reflecting the overall weakness in trading activity in big U.S. banks.
The slump was far worse than JPMorgan Chase & Co’s 19 percent fall and Citigroup Inc’s 6 percent drop, leading to Goldman’s worst fixed-income results since the fourth quarter of 2015.Goldman’s revenue from trading fixed income, currency and commodities fell to $1.16 billion from $1.93 billion. Trading surged a year-ago around the Brexit vote.
The slump was far worse than JPMorgan Chase & Co’s 19 percent fall and Citigroup Inc’s 6 percent drop, leading to Goldman’s worst fixed-income results since the fourth quarter of 2015.Goldman’s revenue from trading fixed income, currency and commodities fell to $1.16 billion from $1.93 billion. Trading surged a year-ago around the Brexit vote.
Goldman Sachs has long been reliant on bond trading revenue than its peers. Now regulators have hurt Goldman Sachs
Earnings per share, however, rose to $3.95 as number of shares outstanding decreased nearly 6 percent. It topped analysts’ average estimate of $3.39 per share, according to Thomson Reuters I/B/E/S.Total revenue, including net interest income, fell 0.6 percent to $7.89 billion.
Goldman’s operating expenses fell about 2 percent to $5.38 billion.
The lender’s return on equity was 8.7 percent. Analysts typically like to see a bank produce returns of at least 10 percent to meet its cost of capital.
Goldman has been working to cut its reliance on trading and shift to more stable businesses like investment management. That division generated revenue of $1.53 billion, up 13 percent from the year-ago quarter.
The bank has also pushed into consumer lending, launching an online platform called Marcus in 2016.
Shares of Goldman, a Dow component, fell 0.6 percent in premarket trading. The stock is the worst performing among the six large U.S. banks. Up to Monday’s close, it had lost 4.3 percent in value this year, significantly underperforming the broader S&P 500 Financial Index, which has gained 6.7 percent.
What do you guys think? How are you guys expecting Morgan Stanley to do? I'm assuming it won't be the best news for Morgan Stanley but perhaps they won't suffer as much as Goldman did.
GS have never been good at trading. Their prop desk sucked. Only reason they've historically done well in commodities is through acquisitions and "leading" markets. DickFuld Should replace LB as CEO :)
GS or George W Bush?
interesting, why do you think so?
Morgan Stanley already reported brah - 4% decrease in trading revenue.
Not all alpacas spit, but all are capable of doing so. "Spit" is somewhat euphemistic; occasionally the projectile contains only air and a little saliva, although alpacas commonly bring up acidic stomach contents (generally a green, grassy mix) and project it onto their chosen targets. Spitting is mostly reserved for other alpacas, but an alpaca will occasionally spit at a human.
Jet fuel can't melt steel beans
Voluptas aperiam sunt quas quasi odit illo. Asperiores itaque autem voluptatem maiores. Tempore ad totam cum et et. Facere provident explicabo consequuntur aut modi temporibus aperiam. Rerum nostrum quos impedit ad ipsa qui illum. Qui et quam eligendi quis atque.
Occaecati quia cumque quasi quia. Voluptas praesentium dignissimos doloribus officia. Veniam ut sequi quam quas ipsum.
Saepe harum asperiores repellendus laboriosam recusandae debitis repellat. Sit deserunt ut occaecati ut saepe sequi laboriosam sunt. Laudantium debitis cum eum aut non. Doloremque sed at ipsam impedit in id. Veniam natus veniam molestiae et. Sed et omnis in maiores perspiciatis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...