Goldman Sachs Group Inc (NYSE:GS) stock fell 1.91% (As on October 18, 11:11:47 AM UTC-4, Source: Google Finance) after the company posted third-quarter profit and revenue that exceeded analysts’ estimates on stronger-than-expected trading revenue. The bank said profit dropped 33% to $2.058 billion. Bond trading revenue fell 6% from a year earlier to $3.38 billion, but that was almost $600 million more than what analysts had expected. Goldman cited strength in interest rate products and mortgages, which helped offset declines in trading of currencies, commodities and credit. The firm’s efforts to boost lending activities in the trading division also helped as fixed income financing revenue reached a record $730 million. Equities trading revenue climbed 8% from a year earlier to $2.96 billion on higher activity in derivatives, topping the estimate by roughly $200 million. Investment banking revenue edged higher by 1% to $1.55 billion, slightly exceeding the $1.48 billion estimate. Annualized return on average common shareholders’ equity (ROE)1 was 7.1% for the third quarter of 2023 and 7.6% for the first nine months of 2023. Annualized return on average tangible common shareholders’ equity (ROTE) was 7.7% for the third quarter of 2023 and 8.2% for the first nine months of 2023.

Moreover, Asset & Wealth Management generated quarterly net revenues of $3.23 billion, including record Management and other fees. Assets under supervision3,4 ended the quarter at $2.68 trillion. Book value per common share increased by 1.5% during the quarter and 3.4% during the first nine months of 2023 to $313.83. During the quarter, progress was made toward the execution of strategic goals, as the firm announced agreements to sell GreenSky and Personal Financial Management.

GS in the third quarter of FY 23 has reported the adjusted earnings per share of $5.47, beating the analysts’ estimates for the adjusted earnings per share of $5.31, according to  estimate from LSEG, formerly known as Refinitiv. The company had reported 1 percent decline in the adjusted revenue to $11.82 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $11.19 billion.

Additionally, the company declared a dividend of $2.75 per common share to be paid on December 28, 2023 to common shareholders of record on November 30, 2023. During the quarter, the firm returned $2.44 billion of capital to common shareholders, including $1.50 billion of common share repurchases (4.2 million shares at an average cost of $354.79) and $937 million of common stock dividends.