Goldman Sachs’ third-quarter profit fell 33% as trading and investment banking remained stagnant

NEW YORK (AP) — Goldman Sachs saw its third-quarter profit fall 33%, as the investment bank saw weak market conditions that allowed for fewer deals and market-making opportunities for the company.

The bank also saw a notable rise in expenses during the quarter, as the bank was forced to write off its investments in lending platform GreenSky as well as its real estate investments.

The New York-based company achieved profits of $2.06 billion, or $5.47 per share, down from profits of $3.07 billion, or $8.25 per share, in the same period last year.

Analysts had lower expectations for Goldman Sachs this quarter, with markets slowing and the company announcing earlier this year that it would pull out of its nascent consumer lending business. The bank is selling its GreenSky business, which the bank was forced to write off this quarter.

“We are confident that the work we are doing now provides us with a much stronger platform for 2024,” David Solomon, chairman and CEO, said in a statement.

Goldman Sachs struggled last year as fewer companies sought deals amid rising inflation and geopolitical uncertainty, and market conditions were tighter this year than last.

The bank saw a 1% increase in investment banking revenues compared to last year, and its bond, currency and commodities trading business declined 6% during the period. Share trading increased by 8%.

The bank’s return on equity, a measure of how well an investment bank is performing with the assets it holds, was 7.1% in the quarter. Historically, in the last decade or so, banks like Goldman have aimed to get this measure above 10%.