New York (AFP) – Goldman Sachs reported higher third-quarter profit on Tuesday, sending shares higher as CEO David Solomon said there were no plans for a leadership transition. Profit at the New York financial heavyweight during the July-September period was $5.1 billion, up 33 percent from the year-ago level but down 20 percent from the second quarter when business conditions were especially robust. Revenue rose 23 percent to $18.7 billion.
Like rival JPMorgan Chase, which reported earlier Tuesday, Goldman saw muted activity in some parts of its markets business, such as fixed income, currency, and commodities, where revenues were “essentially unchanged,” the firm said in a press release. But net revenue in equities trading soared 72 percent from the year-ago level. Goldman also scored higher investment banking fees, citing increases in completed mergers and an elevated level of initial public and secondary equity offerings.
The Wall Street Journal reported on September 28 that Goldman’s board had discussed a plan for Solomon to step down as CEO and be replaced with Chief Operating Officer John Waldron around the end of 2027 or in 2028. A Goldman spokesman said in response that there was no timetable for a transition. Solomon reiterated that on Tuesday, saying he was “super pleased” with the firm’s progress.
“I’m really enjoying the job, but more importantly, as a team, we’re super excited about what’s in front of us in the coming years and how we can continue to grow the franchise and really accelerate the earnings potential of the firm,” Solomon said. “I just want to be clear: there is no succession transition or timeline underway at Goldman Sachs,” Solomon said. “The board and I are singularly focused on our strategy to grow the firm and continue to serve our clients with excellence.”
Goldman shares rose 0.8 percent in morning trading.
© 2024 AFP
