It was much better than analysts expected. A year ago, in the face of the debt crisis in europe, the institute had slipped into the red with around 400 million dollars. It was only the second quarterly loss in goldman’s history. So far, the bank has had a hard time recovering from it.
In the first half of the year, yields fell to their lowest level in seven years. Now the world is looking much brighter again for goldman. The billions of euros in economic stimulus provided by the U.S. Federal reserve are paying off for the banks. Above all, the U.S. Housing market and the trade in loans are picking up again. So goldman was able to more than double its earnings in the third quarter to 8.4 billion u.S. Dollars compared to the same period last year.
In addition to private home builders, many companies in the USA are also taking advantage of the low interest rates to restructure their debt. That goldman’s fees will rise by almost two-thirds in the third quarter. In addition, the value of its own investments, which a year ago had been largely responsible for the loss, rose.
The consulting business for company takeovers was still quite weak. In the summer, revenues from this even declined slightly. However, the outlook has recently improved considerably. Internationally, there is more movement on the markets again – so more borsengange are on the horizon. In addition, the takeover business seems to be gaining momentum again. So goldman sachs is one of the key advisors, along with deutsche bank, in the $20 billion acquisition of U.S. Mobile phone company sprint by japanese conglomerate softbank. This business alone is generating substantial fees.