In the last reported period, the financial investment and securities group Goldman Sachs experienced a significant decrease in its earnings, reaching 1.1 billion dollars, which represents 62% less compared to the same period of the previous year. Revenue also took a hit, falling 8% to $10.9 billion.
The bank’s critical global banking and markets division was negatively impacted by a reduction in M&A transactions across the industry. In addition, revenue in fixed income, commodity, and currency-related trades fell sharply, while revenue in equity trading was flat.
Another of Goldman Sachs’ big divisions, asset and wealth management, also saw a decline, attributed to net losses and downgrades in real estate.
Goldman Sachs CEO David Solomon previously warned of the negative impact on commercial real estate from rising interest rates and the shift to remote work in an interview with CNBC in June.
In summary, Goldman Sachs faced a difficult period with a significant decline in its profits and revenue, highlighting the negative influence of the reduction in M&A transactions in the industry as well as the impact on the real estate sector and asset and wealth management.