Goldman Sachs reported its third-quarter earnings for 2023 on Tuesday (Oct. 17).
The company achieved net revenues of $11.8 billion and net earnings of $2.1 billion. The firm’s focus on its core businesses, Global Banking & Markets and Asset & Wealth Management, has contributed to its success. In its third-quarter report, the company said net revenues were essentially unchanged from the same period last year.
In the Global Banking & Markets segment, Goldman Sachs generated revenues of $8 billion, driven by strong performance in equity underwriting and debt underwriting. The Asset & Wealth Management segment reported revenues of $3.2 billion, primarily due to higher management and other fees. The firm remains optimistic about future opportunities in these businesses.
The firm also discussed its plans for its Platform Solutions business, which includes partnerships with Apple and GM. Goldman Sachs aims to manage these partnerships more effectively and reduce their impact on its overall business. The focus is on narrowing the firm’s strategic focus and strengthening its leading position in the ultra-high net worth wealth management space.
Goldman Sachs’ CEO, David Solomon, expressed confidence in the firm’s progress in executing its strategic priorities. He acknowledged that certain selected items related to strategic goals impacted the firm’s results, but he remains optimistic about a continued recovery in capital markets and strategic activity. Solomon anticipates a resurgence in activity that will act as a tailwind for the firm, aligning with its positive outlook.
Goldman Sachs recently announced the sale of its GreenSky platform and associated loan assets to a consortium led by Sixth Street. This transaction is part of the firm’s strategy to narrow the focus of its consumer business. The sale is expected to close in the first quarter of 2024.
The consortium acquiring GreenSky includes funds and accounts managed by KKR, Bayview Asset Management, and CardWorks. The transaction also involves support from PIMCO through an asset acquisition and strategic financing from CPP Investments.
The CEO of Sixth Street, Alan Waxman, expressed his commitment to driving growth for GreenSky through enhanced technology and user experiences. The consortium aims to continue accelerating business growth for GreenSky’s network of home improvement merchants.