Goldman Sachs announces restructuring and earnings decline in the third quarter of 2022

Goldman Sachs Group Inc said on Tuesday that it was reorganizing its business into three units, another overhaul in less than three years of the security giant. Wall Streetwhich also reported a drop in third-quarter profit.

Profit attributable to common stockholders fell to $2.96 billion, or $8.25 a share, in the quarter ended Sept. 30, from $5.28 billion, or $14.93 a share, a year ago.

Analysts had expected a profit of $7.69 per share, according to Refinitiv data. It was not clear whether the reported figures were comparable to the estimates.

Is about largest investment bank reorganization in just over two years and it outlines plans for four main units: investment banking, global markets, consumer and wealth management, and asset management.

The restructuring comes as the bank tries to boost revenue from fee-dependent businesses at a time when rising interest rates have dented valuations and business deals have closed.

The revision follows a round of job cuts in September that could have affected hundreds of bankers.

The bank is closing out a mixed quarter for big US banks, in which choppy capital markets and slowing economic growth weakened investment banking, but rising borrowing costs boosted net interest income. .

Trading slowed in the quarter, hurting some of Goldman’s most lucrative businesses.

Total revenue fell 12% to $11.98 billion in the quarter.

However, given the aggressive rate hikes by the Federal Reserve and the ukrainian warinvestors boosted trading in the markets, helping the bank’s fixed income, foreign exchange and commodities division.