Goldman Sachs (GS) Posts Q3 EPS of $4.57; Boosts Qtr. Dividend to 60c/Share

(Updated - October 16, 2014 7:38 AM EDT)

Goldman Sachs (NYSE: GS) reported Q3 EPS of $4.57, $1.38 better than the analyst estimate of $3.19. Revenue for the quarter came in at $8.39 billion versus the consensus estimate of $7.69 billion.

“The combination of improving economic conditions in the U.S. and a strong global franchise continued to drive client activity across our diverse set of businesses,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “While conditions and sentiment can shift quickly, the strength of our transaction backlog indicates our clients’ desire to pursue and execute their strategic plans for growth.”

Highlights

• Goldman Sachs continued its leadership in investment banking, ranking first in worldwide announced and completed mergers and acquisitions for the year-to-date. (2) The firm also ranked first in worldwide equity and equity-related offerings and common stock offerings for the year-to-date. (2)
• Assets under supervision increased to a record $1.15 trillion, with net inflows during the quarter of $20 billion, including $13 billion in long-term assets under supervision.
• Book value per common share and tangible book value per common share (3) both increased approximately 2% during the quarter to $161.38 and $151.70, respectively.
• The firm continues to manage its liquidity and capital conservatively. The firm’s global core excess liquidity (4) was $180 billion (5) as of September 30, 2014. In addition, the firm’s Common Equity Tier 1 ratio (6) was 11.8% (5) as of September 30, 2014, under the Basel III Advanced approach.
• On October 15, 2014, the firm increased its quarterly dividend to $0.60 per common share.

Capital

As of September 30, 2014, total capital was $247.58 billion, consisting of $82.28 billion in total shareholders’ equity (common shareholders’ equity of $73.08 billion and preferred stock of $9.20 billion) and $165.30 billion in unsecured long-term borrowings. Book value per common share was $161.38 and tangible book value per common share (3) was $151.70, both approximately 2% higher compared with the end of the second quarter of 2014. Book value per common share and tangible book value per common share are based on common shares outstanding, including restricted stock units granted to employees with no future service requirements, of 452.8 million as of September 30, 2014.

Other Balance Sheet and Liquidity Metrics

• Total assets were $869 billion (5) as of September 30, 2014, compared with $860 billion as of June 30, 2014.
• The firm’s global core excess liquidity (GCE) (4) was $180 billion (5) as of September 30, 2014 and averaged $183 billion (5) for the third quarter of 2014, compared with an average of $173 billion for the second quarter of 2014.
• Level 3 assets were $41 billion (5) as of September 30, 2014, compared with $40 billion as of June 30, 2014, and represented 4.7% of total assets.

For earnings history and earnings-related data on Goldman Sachs (GS) click here.

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