Goldman Sachs (GS) said Thursday that its third-quarter net income was $1.52 billion, or $2.88 a share, vs. $1.51 billion, or $2.85, a year ago. These results beat estimates, but net revenue fell far short of expectations.
Sales dropped 20% year over year to $6.72 billion. Goldman’s investment bank, for instance, reported a 44% drop in revenue from bond, currency and commodities trading.
The bank, led by Lloyd Blankfein, cut costs by 25% to $4.56 billion in the third quarter, and compensation expenses declined by 35%.
“Ongoing uncertainty around the economic outlook and the traditional seasonal slowdown drove a significant reduction in client activity during the quarter,” said CFO Harvey M. Schwartz, in a call with analysts early Thursday.