Goldman Sachs Group Inc (GS) Beats Estimates

Goldman Sachs Group Inc (NYSE:GS) released the earnings results from its most recently completed quarter this morning, posting earnings of $4.57 per share on $8.39 billion in revenue. Analysts had been expecting earnings of $3.21 per share on $7.82 billion in revenue. In the same quarter a year ago, Goldman Sachs reported $6.72 billion in sales and $2.88 per share in earnings.

Goldman Sachs’ (GS) key metrics

The firm reported a 74% increase in FICC revenue, which climbed to $2.17 billion in the quarter. Goldman Sachs Group Inc (NYSE:GS)’s annualized return on average common shareholders’ equity was 11.8% for the September quarter and 11.2% year to date.

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Assets under supervision hit a new record of $1.15 trillion during the quarter. Net inflows were $20 billion, including $13 billion in long-term assets under supervision. Book value per common share rose 2% to $161.38, while tangible book value per share also rose 2%, hitting $151.70 for the quarter.

Core excess liquidity was $180 billion at the end of September. The Basel Advanced Common Equity Tier 1 ratio was 11.8% as of the end of the quarter. Total capital at the end of the quarter was $247.58 billion.

Goldman Sachs’ earnings by segment

The firm recorded $1.46 billion in net revenues for its Investment Banking division, a 26% year over year increase but 18% quarter over quarter decline. In Institutional Client Services, Goldman Sachs posted $3.77 billion in net revenues, a 32% year over year increase and 2% quarter over quarter decline.

The firm saw Investing and Lending net revenues increase 15% year over year and decline 18% sequentially to $1.69 billion. Net revenues from Investment Management rose 20% year over year and were flat sequentially at $1.46 billion.

“The combination of improving economic conditions in the U.S. and a strong global franchise continued to drive client activity across our diverse set of businesses,” said Goldman Sachs Group Inc (NYSE:GS) Chairman and CEO Lloyd C. Blankfein in a statement. “While conditions and sentiment can shift quickly, the strength of our transaction backlog indicates our clients’ desire to pursue and execute their strategic plans for growth.”

Goldman Sachs increases dividend

This morning Goldman Sachs Group Inc (NYSE:GS) also announced that it is increasing its quarterly dividend to 60 cents per share. The previous dividend was 55 cents per share. The September quarter’s dividend will be paid on De. 30 to shareholders of record as of Dec. 2.