Goldman Sachs saw its net revenues for Q3 2023 remain largely the same as Q2 2023 – US$11.82 billion – thanks in part to higher net revenues in its global banking and markets division.
The firm’s net revenues in the global banking and markets division were US$8.1 billion for the third quarter of 2023, 6% higher than the third quarter of 2022 and 11% higher than the second quarter of 2023.
The revenues were driven by “strong performances” in both fixed income, currency and commodities (FICC), which included record quarterly net revenues in financing, as well as equities.
The firm’s net revenues in FICC were US$3.38 billion in Q3 2023, 6% lower than a “strong third quarter” of 2022, reflecting lower net revenues in FICC intermediation, driven by lower net revenues in currencies and commodities and lower net revenues in credit products, but partially offset by “significantly” higher net revenues in interest rate products and mortgages. Net revenues in FICC financing increased slightly.
Net revenues in equities were $2.96 billion, 8% higher than the third quarter of 2022, due to higher net revenues in equities financing, reflecting significantly higher net revenues in prime financing, partially offset by significantly lower net revenues from portfolio financing, and higher net revenues in equities intermediation, primarily in derivatives.
Goldman Sachs CEO and chair David Solomon said: “We continue to make significant progress executing on our strategic priorities and we’re confident that the work we’re doing now provides us a much stronger platform for 2024. I also expect a continued recovery in both capital markets and strategic activity if conditions remain conducive. As the leader in M&A advisory and equity underwriting, a resurgence in activity will undoubtedly be a tailwind for Goldman Sachs.”
This story first appeared on Best Execution.
© Markets Media Europe 2023
