Goldman Sachs has posted net earnings of $3.07bn for the third quarter of 2022, down 43% compared with $5.37bn a year ago.

For the quarter ended 30 September 2022, the group’s diluted earnings per common share (EPS) was $8.25 versus $14.93 in the year ago quarter.

The bank’s total revenues dropped 12% to $11.98bn from $13.61bn in the third quarter of 2021.

The decline in the quarterly revenue was due to dip in net revenues from the bank’s investment banking and asset management unit.

However, improved net revenues from Global Markets and Consumer & Wealth Management division partly offset the decline, company said.

Total net revenues in the investment banking arm slipped 57% to $1.58bn during the quarter.

Asset management revenue declined 20% to $1.82bn on the back of lower gains from private equity investments.

Revenues in consumer and wealth management totalled $2.38bn, a surge of 18% compared with the previous year.

The bank’s net revenues in wealth management remained same at $1.63bn.

Overall, the group’operating expenses rose 17% to $7.70bn due to an increase in compensation and benefits expenses as well as addition of NN Investment Partners (NNIP) and GreenSky, among others.

Goldman Sachs CEO David Solomon said: “In January 2020, we outlined our strategy in clear and direct terms, introducing a plan to grow and strengthen our core businesses, diversify our products and services, and operate more efficiently as we drive higher, more durable returns.

“Today, we enter the next phase of our growth, introducing a realignment of our businesses that will enable us to further capitalise on the predominant operating model of One Goldman Sachs as we better serve our clients.”

Furthermore, CNBC, citing a staff memo, reported that the bank’s new business divisions will be named Asset & Wealth Management, Global Banking & Markets and Platform Solutions.