Goldman Sachs posts better-than-expected earnings

Goldman Sachs said profit surged 40 percent to $2.57 billion, exceeding analysts’ estimates on better-than-expected revenue from investment management and investing & lending divisions. Earnings of $5.98 per share exceeding the $4.66 estimate of analysts surveyed by Thomson Reuters. Company-wide revenue rose 19 percent to $9.40 billion, beating the $8.74 billion estimate.

The bank's shares slipped 1 percent in pre-market trading after posting results. Goldman said that non-compensation expenses surged 24 percent to $2.66 billion from a year earlier after setting aside more money for litigation and regulatory proceedings. That was about $200 million more than analysts had been expecting.

Goldman's traders essentially matched expectations, unlike at rival J.P. Morgan where bond and stock traders posted stronger-than-expected results. Fixed-income trading business generated $1.68 billion in revenue, roughly matching analysts' expectations for $1.65 billion. Equity trading produced $1.89 billion, slightly below the $1.91 billion estimate of analysts.

Source: CNBC

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