Goldman Reaps Over $100M A Day On 36 Days in Q3

Goldman Sachs (GS) generated more than $100 million in trading revenue on 36 days in the three months to September and raked in more than $50 million in profit on more than eight out of 10 trading days,  Bloomberg reported on Wednesday.

The performance – revealed in a regulatory filing with the U.S. Securities and Exchange Commission – showed traders at Goldman Sachs, the most profitable securities firm in Wall Street history,  recorded only one daily loss in the third quarter. That compares with two losing trading days in the previous quarter when the New York-based bank made at least $50 million on 53 of the 65 trading days in the period, or 82% of the time.

Goldman’s trading results reflect the firm’s willingness to maximize its profit during the period. However, $8.8 billion in third-quarter trading revenue, fell short of the record $10 billion in the second quarter as the company reduced risk-taking in areas such as interest rates and equities.

Today’s filing revealed the following gains and losses from some of Goldman’s fixed-income, currencies and commodities trading division. The firm said it lost $3.6 billion in currency trading. That compares with $1.4 billion lost from that division in the 2nd quarter. The figure however, is volatile because it includes positions used as a hedge against currency exposure across Goldman’s portfolio. Credit trading came in quite positive, as it doubled in profits from $1 billion in the 2nd quarter to $2 billion in the 3rd quarter. The bank holding company also increased profits in equities by about 25% to $3.4 billion. Interest rates generated profits as well, posting $3.9 billion in revenues, up from $3.8 billion in the 2nd quarter, according to the filing.

Goldman, which generated about $4.5 billion in pre-tax earnings off trading and investments during Q3, seems unstoppable. The co. has been the undisputed leader in $100 million days for quite some time. Here are the numbers according to a Bloomberg report:

  • 2008: 90 days
  • 2007: 88 days
  • 2006: 49 days
  • 2005: 18 days
  • 2004: 14 days

GS shares, currently at $170 and change,  are up over 80% for the year.

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