But investors have been dismayed by signs of increasing pressure on revenues of other major U.S. banks. Investment management was able to generate $4.65 billion YTD and company’s assets under supervision were reported to be at $1.19 trillion by the end of this quarter. In fact, the USA banking sector on a whole has been substantially gripped by the underlying market weakness, which continues to threaten the future outlook of the country’s financial institutions.
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Here’s how Goldman’s revenue numbers compare to past year, as well as to the previous quarter.
BB&T Corporation (BBT) jumped 2.1% or 74 cents to $36.49 after the financial services provider said total revenues in the third-quarter ending in September soared 6.9% from a year ago to $2.49 billion. Revenue also did not meet analysts’ expectations of US$7.29 billion. The Automobile company announced earnings per share of $1 against a consensus Street estimate of $1.01, missing estimate by $0.01.
“We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth”, said the bank’s chief executive, Lloyd Blankfein.
Other banks set aside less money for pay in the third quarter as well.
“The quarter had more than its fair share of volatility and our results speak to the resilience of our franchise globally”.
Goldman Sachs posted a profit that did not meet estimates of analysts for just the first quarter in four years as the turmoil in the global markets took a larger toll on trading revenue than it did at is rivals. Both Bank of American and JPMorgan Chase reported a decline of 11%in revenue, while Citigroup’s bond trading revenue dropped 16%.
Loans totaled $622 billion in the third quarter, down 5 percent from past year during the same period and down 1 percent in constant dollars. More importantly, it managed to rise despite the impact of headwinds on its peers this quarter. The stock has a market capitalization of $83.60 billion and a P/E ratio of 10.96. One research analyst has rated the stock with a sell rating, nine have given a hold rating and ten have issued a buy rating to the company’s stock.
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Earnings are perhaps the single most studied number in a company’s financial statements because they show a company’s profitability. The Goldman staffers accused of cheating aren’t a part of the company’s research team but are employees in their first or second year of employment in its investment banking division, who are typically referred to as analysts. The recommendations are placed into a 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell rating.
