Goldman profit falls 44% but beats target; bank confirms reorganization plan
Goldman Sachs Group Inc. shares rose 2% in pre-market trades on Tuesday after the bank topped its third-quarter earnings and revenue targets and confirmed a reorganization plan. Goldman Sachs reported a drop in third-quarter net income to $2.96 billion, or $8.25 a share, from $5.28 billion, or $14.93 a share, in the year-ago quarter. Revenue fell to $11.98 billion from $13.61 billion. Wall Street analysts expected Goldman Sachs to earn $7.75 a share on revenue of $11.42 billion, according to estimates compiled by FactSet. Goldman Sachs also confirmed plans to reorganize the bank into three operating segments: Asset & Wealth Management, Global Banking & Markets and Platform Solutions. The bank said its key priorities moving forward include growing management fees, maximizing wallet share and growing its financing activities, as well as scaling its platform solutions to deliver pre-tax profitability. Shares of Goldman Sachs are down 19.8% in 2022 compared to a 16.9% drop by the Dow Jones Industrial Average , a 22.8% loss by the S&P 500 and a drop of 18.6% by the Financial Select SPDR Fund .
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