Goldman’s trading business returns to former glory during pandemic stress | Malay Mail

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NEW YORK, Oct 14 — Goldman Sachs Group Inc today posted its best quarterly performance in a decade by some measures, as trading has moved back into the limelight and its lack of a big consumer business has switched from a curse to a blessing. The Wall Street bank posted a quarterly return on...

Wednesday, 14 Oct 2020 10:32 PM MYT

The Wall Street bank posted a quarterly return on equity of 17.5 per cent, its highest since 2010. Investors closely track that figure because it shows how well a bank uses shareholder money to produce profits. In the years leading up to the pandemic, Goldman’s heavy exposure to trading and lack of exposure to traditional lending was viewed as a problem. The bank is in the middle of a business-model revamp orchestrated by Chief Executive David Solomon that includes building out its consumer bank, called Marcus, and adding services like retail wealth management.

In a statement, Solomon said Goldman has notched market share gains that will help during the post-pandemic recovery. Its backlog of upcoming deals has “increased significantly,” Chief Financial Officer Stephen Scherr said on a conference call, suggesting future quarters will also have robust fees.

 

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