NEW YORK (AP) — Goldman Sachs Group Inc. reported a third-quarter loss of $428 million Tuesday as revenue from underwriting stocks and bonds plunged. It was only the second quarterly loss for the investment bank since it went public 12 years ago.
Investors were unfazed by the loss, which had been widely expected due to the turmoil in financial markets this summer. Goldman’s stock rose 0.9 percent to $97.72 in early trading.
UBS analyst Brennan Hawken said the stock, which had fallen from about $128 since second-quarter earnings were reported three months ago, had already priced in the impact of the dismal third-quarter results.
The latest loss was equivalent to 84 cents per share. The bank earned $1.7 billion, or $2.98 per share, in the same period a year ago. Revenue slumped 60 percent to $3.6 billion, missing analysts’ estimates.
Investment banking had been a bright spot in Goldman’s previous quarter, but turbulent markets this summer and nervousness over political wrangling in Washington led companies to hold off on new stock and bond offerings. Underwriting revenue plunged 61 percent.