Goldman Sachs has beat analyst estimates in Q3 2020, posting a 94% jump in net earnings largely driven by asset management and bond trading and lower loan loss provisions.

Key metrics

The investment bank’s net earnings applicable to common shareholders for the three months to September 2020 stood at S3.48bn, versus $1.79bn a year ago.

Total net revenues jumped 30% to $10.78bn from $8.32bn over the period.

Net interest income at the group increased $1.08bn from $1.01bn.

Besides, provision for credit losses dropped to $278m from $291m in the prior year and $1.59bn in the previous quarter.

The asset management unit generated $2.77bn in revenue, a 71% surge from the prior year.

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By GlobalData

The growth was attributed to higher net revenues in equity investments as well as lending and debt investments.

Net revenues in Global Markets soared 29% to $4.55bn from $3.54bn, driven by bond trading revenues of $2.5bn that was 49% higher than Q3 2019.

Net revenues in Equities increased 10% year-on-year to $2.05bn.

Wealth management performance

Higher management and other fees led to a 6% rise in Wealth management revenues to $1.17bn on a year-on-year basis. This reflected the “impact of higher average assets under supervision and higher transaction volumes”, noted the bank.

Net revenues in Private banking and lending remained almost flat at $201m.

Overall, net revenues in the Consumer & Wealth Management unit increased 13% to $1.49bn from $1.31bn.

Goldman Sachs chairman and CEO David Solomon said: “Our ability to serve clients who are navigating a very uncertain environment drove strong performance across the franchise, building off a strong first half of the year.

“As our clients begin to emerge from the tough economy brought on by the pandemic, we are well positioned to help them recover and grow, particularly given market share gains we’ve achieved this year.”