Goldman Sachs reported a strong third quarter this year, more than doubling its revenue to $8.35 billion, from $3.59 billion last year, exceeding the expectations of Wall Street analysts, The New York Times reported Wednesday.
The paper called the quarterly report, "a strong contrast to the same quarter in 2011 when it reported a rare quarterly loss."
Investing and lending drove the quarter with $1.8 billion of net revenue mostly on gains in private equity and gains and income in debt securities with tighter credit spreads, reported Nomura.
Private equity holdings, in particular, turned a corner lifting the bank's earnings for the year, rather than holding them down as they did last year. The Times highlighted a gain this quarter of $99 million on a strategic private equity investment the investment bank made in the Industrial and Commercial Bank of China six years ago.
Nevertheless, Goldman Chief Financial Officer David A. Viniar told The Times that the uncertain global economy and particularly the Eurozone crisis had a dampening effect on business, with corporations conducting less business and stock exchange volumes dropping.
Goldman's annualized return on equity, which measures the profits a bank can generate on its capital and is "a critical measure of profitability" was 8.6 percent for the quarter, The Times reported. The paper added that the figure was virtually unchanged from last year but still a bit higher than the second quarter's 5.4 percent.
For the third quarter of 2012, Goldman reported net earnings applicable to common shareholders of $1.46 billion, or $2.85 a share, compared with a loss of $428 million, or 84 cents a share, for last year's third quarter.
Related Articles
Goldman Sachs Swings to Profit as Revenue Surges
Goldman Sachs Third Quarter Results Propel Markets
Join the Conversation