Goldman Sachs, hit by a drop in trading on certain desks, posted a third-quarter profit of $1.52 billion, largely flat from the same period a year ago.
Despite the difficult markets, Goldman kept a tight control of its expenses in the quarter. Its $2.88 a share profit managed to slightly beat its performance of $2.85 a share in the year-ago period. The per-share results were also well ahead of expectations of $2.43 a share, according to analysts polled by Thomson Reuters.
Revenue in the quarter fell to $6.72 billion, down about 20 percent from $8.35 billion in the year-ago period. Analysts were forecasting revenue of $7.36 billion. The company said its operating expenses in the third quarter were $4.56 billion, 25 percent lower than the same period in 2012.
“The third quarter’s results reflected a period of slow client activity,†said Lloyd C. Blankfein, Goldman’s chairman and chief executive, said in a statement. “Still, we saw various signs that our clients are prepared to act on significant transactions and we believe that the firm is well positioned to help our clients accomplish their objectives.â€
Mr. Blankfein also signaled that the resolution of the fiscal impasse would bode well for clients. “As longer term U.S. budget issues are resolved, we could see an improvement in corporate and investor sentiment that would help lay the basis for a more sustained recovery,†he said.
The firm also increased its dividend by 5 cents, to 55 cents.
