Goldman Sachs profit down in Q3

<p>Net earnings for the third-quarter of 2015 decreased to $1.33 billion.</p>

Goldman Sachs reported today (October 14th) that net earnings for the third-quarter of 2015 decreased to $1.33 billion (£0.86 billion) or $2.90 per share, from $2.14 billion or $4.57 per share in the same quarter last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $2.91 per share for the quarter. 

The Wall Street bank said revenue from fixed-income, currency and commodity trading,  fell 33 per cent to $1.46 billion.

The bank was hit by the recent market turmoil sparked by concerns over China and global growth, which discouraged bond trading and fuelled uncertainty surrounding the timing of a US interest rate hike from the Federal Reserve.

"We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth," chief executive officer Lloyd Blankfein said in a statement released on the company's website. 

However, the bank said revenue in its investment banking unit rose 6.3 per cent to $1.56 billion. 

Profit down for the second quarter this year

The bank posted second-quarter earnings in July that fell sharply from the previous year, hit by a large litigation charge. "During the quarter, the firm recorded $1.45 billion in net provisions for mortgage-related litigation and regulatory matters," the company said.

However, it announced an increase in profits for the first three months of the year, with net earnings of $2.75 billion, which represented a 41 per cent increase from the year before. 

Net revenue was also up 14 per cent at $10.6 billion. The bank explained that it was the highest quarterly revenue for four years.

This quarter, the bank joins JPMorgan Chase & Co and Bank of America Corp in reporting a drop in revenue from bond trading. Both banks said fixed-income, currency and commodity trading (FICC) revenue fell about 11 per cent.

Goldman shares were down 1.3 per cent in premarket trading.

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