Goldman Sachs missed Wall Street’s estimates for quarterly profit on Tuesday as global economic worries dampened appetite for deals and share sales.
Revenue at three of its four major businesses fell, led by a 15 percent drop in investment banking revenue because of lower advisory and underwriting fees.
At the bank’s investing and lending division, where it invests its own balance sheet, net revenue from equity securities fell 40 percent from last year to $662 million.
Analysts had estimated that Goldman would book a loss of over $250 million from its stake in WeWork in the third quarter. Goldman executives on Tuesday declined to comment on its stake in the office-sharing startup.
The only bright spot for Goldman was its institutional client services business, which accounts for nearly a third of its overall revenue, but a 6 percent growth at the unit was not enough to offset weakness in its other major businesses.
“Overall, GS posted mixed results this quarter. While the top line beat to us was a positive, it was driven by more trading which tends to be less persistent and investment banking results were weak,” analysts at Keefe, Bruyette & Woods said in a note to clients on Tuesday.
Bond trading revenue was up 8 percent, while equities rose 5 percent. JPMorgan also reported a surge in bond trading.