Goldman traders rescue results from investment-banking slump - BNN Bloomberg

Goldman Sachs Group Inc.’s traders countered the industry’s underwriting slump with revenue gains that raced past analysts’ estimates.

Goldman was the last of the six biggest US banks to post results, with investors scouring the reports for clues on the health of the economy. Company executives last week said the US is well-positioned to withstand fallout from surging inflation, even if rising interest rates push the economy into a recession in coming quarters. Bank bosses warned that a potent mix of hurdles are still a threat, including inflation and the impact of Russia’s invasion of Ukraine.

“Given the challenging operating environment, we are closely re-examining all of our forward spending and investment plans to ensure the best use of our resources,” Coleman said. “As a result, we’re taking a number of actions to improve our operating efficiency. Specifically, we have made the decision to slow hiring velocity and reduce certain professional fees going forward.”

Goldman Sachs’s investment-banking revenue fell 41 per cent, reflecting a sharp drop in underwriting, a decline that had been well-telegraphed as clients steered clear of capital markets. Analysts were expecting it to fall 46 per cent. The merger-advisory business helped ward off a bigger drop, posting US$1.2 billion in revenue -- a figure that was almost double the numbers posted by the firm’s closest rival in that business. JPMorgan Chase & Co. took the No. 2 position in the quarter.

The bank has signaled its intent to turbocharge fundraising to get to a place where fees from managing outside capital outweigh investments. The company’s balance sheet equity investments stand at US$16 billion, down from US$22 billion at the end of 2019. Those investments lost US$221 million in the quarter on the broad selloff in markets.

Österreich Neuesten Nachrichten, Österreich Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

Investment banks pivot from frantic hiring to weighing job cuts amid dealmaking slumpEquity capital markets desks are bracing for a wave of job cuts amid a collapse in deal flow, sources say. Find out more.
Herkunft: nationalpost - 🏆 10. / 80 Weiterlesen »

Investment banks pivot from frantic hiring to weighing job cuts amid dealmaking slumpEquity capital markets desks are bracing for a wave of job cuts amid a collapse in deal flow, sources say. Find out more.
Herkunft: fpinvesting - 🏆 43. / 63 Weiterlesen »

Precision Drilling buying Canadian well servicing business from High Arctic - BNN BloombergPrecision Drilling has signed a deal to buy the Canadian well servicing business of High Arctic Energy Services Inc. for $38.2 million in cash.
Herkunft: BNNBloomberg - 🏆 83. / 50 Weiterlesen »

Feds lay out options for oil and gas industry emissions cap - BNN BloombergThe Canadian government released potential designs for an emissions cap on the oil and gas industry, the next step in Prime Minister Justin Trudeau’s plan to cut emissions in the sector by 42 per cent by 2030. Keep destroying our energy industry.
Herkunft: BNNBloomberg - 🏆 83. / 50 Weiterlesen »