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Goldman Sachs (GS) 3Q 2020 earnings

David Solomon, CEO, Goldman Sachs, speaking at the World Economic Forum in Davos, Switzerland, Jan.23, 2020.

Adam Galacia | CNBC

Goldman Sachs released third quarter results that squeezed analysts’ profit estimates on better than expected results in bond trading and wealth management.

Here’s how the company did it:

Earnings: $ 9.68 per share, versus $ 5.57 expected by Refinitiv̵

7;s consensus estimates.

Revenue: $ 10.78 billion, against the $ 9.46 billion expected by Refinitiv estimates.

CEO David Solomon just celebrated his second year at Goldman Sachs, but he’s still making his mark on the company.

Last month, it restructured many of its businesses and appointed new heads for the New York-based bank’s asset management and consumer and wealth management divisions.

While Goldman Sachs has not been defeated by the expected loan losses linked to the coronavirus like other major banking rivals, the company has yet to convince investors that its new businesses will drive earnings growth and stock appreciation.

The 151-year-old investment bank is in the midst of a transformation, launching a series of digital banking products in hopes of destroying its established competitors in the retail banking sector.

It is also pushing for more wealth management revenue, like rival Morgan Stanley, but it hasn’t announced megadeals like the two major acquisitions Morgan Stanley revealed this year.

Goldman shares fell 8.3% this year, a smaller decline than most large banks and a 31% decline in the KBW Bank Index.

On Tuesday, rivals JPMorgan Chase and Citigroup posted results that beat analysts’ expectations as both banks set aside less money for defaulted loans.

This story is developing. Please check back for updates.

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