Goldman Sachs beats profit expectations on investment banking surge
Catalyst Capital Advisors co-founder and CIO David Miller dissects ‘powerful earnings growth’ and more as markets rally on easing trade tensions on ‘Making Money.’
Goldman Sachs beat Wall Street expectations for third-quarter profits on Tuesday, as its investment bankers earned higher advisory fees and rallying markets boosted revenue from managing client assets.
The bank’s prediction for a banner year for dealmaking has materialized as corporations revive plans for mergers and listings.
Goldman’s investment banking fees surged 42% to $2.66 billion in the quarter ended Sept. 30 from a year ago. Analysts were expecting a 14.3% increase, according to the average estimate compiled by LSEG.
Goldman Sachs CEO David Solomon (Michael Nagle/Bloomberg via / Getty Images)
JPMORGAN LIFTS INTEREST INCOME FORECAST AFTER PROFIT BEATS ESTIMATES
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP INC. | 758.09 | -9.84 | -1.28% |
A Goldman executive said the firm advised on $1 trillion in announced mergers and acquisitions year to date, $220 billion more than its next closest competitor.
It advised Electronic Arts on its $55 billion sale to a consortium of private equity firms and Saudi Arabia’s Public Investment Fund this year, and also advised Holcim on the spinoff of its North American business Amrize, now valued at $26 billion.
Goldman also advised Fifth Third Bancorp, which this month agreed to buy regional lender Comerica in a $10.9 billion deal to create the ninth-largest U.S. bank.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| EA | ELECTRONIC ARTS INC. | 200.35 | -0.40 | -0.20% |
| FITB | FIFTH THIRD BANCORP | 40.36 | -2.56 | -5.96% |
| CMA | COMERICA INC. | 73.88 | -4.73 | -6.02% |
ADVISORY FEES JUMP
The growth was fueled by a 60% surge in advisory fees, while debt and equity underwriting fees also increased. Rival JPMorgan Chase also reported robust investment banking numbers.
Jamie Dimon, chief executive officer of JPMorgan Chase & Co., speaks during the National Retirement Summit in Washington, D.C., on March 12, 2025. (Al Drago/Bloomberg via Getty Images)
Goldman shares fell 1.8% in premarket trading after the results. The shares have surged 37% year-to-date as of Monday, reflecting the dealmaking rebound.
“This quarter’s results reflect the strength of our client franchise and focus on executing our strategic priorities in an improved market environment,” CEO David Solomon said in a statement.
“We know that conditions can change quickly and so we remain focused on strong risk management,” he said, echoing cautious optimism from JPMorgan CEO Jamie Dimon.
WEALTHY INVESTORS TAP ETFS FOR THREE HOT ASSETS, ACCORDING TO GOLDMAN SACHS
Global M&A volumes for the first nine months of the year crossed $3.43 trillion, with nearly 48% of it in the U.S., according to data from Dealogic.
The period also saw the highest average M&A volume globally and in the U.S. since 2015, in line with Solomon’s prediction at last year’s Reuters…
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