Goldman CEO Flags Softer Q3 FICC, $500M Expense Jump
GS sits 26% above its 52-week low of $740.01.
Summary
CEO David Solomon told the Barclays conference that FICC revenue will be slightly softer in Q3 versus a very strong equities business, with a few weeks left in September. He also guided non-compensation expenses up by $500 million and flagged higher provisions for bad debt due to 'idiosyncratic things.' This follows Q2's record $20.34B revenue and 32% FICC surge, so the commentary signals a sequential slowdown. Bank of America's CEO earlier this week warned of a 10% industry-wide investment banking fee decline, adding to sector pressure. Watch for Q3 earnings in October to confirm the magnitude of the FICC softness and expense impact.
Updates
· Wiseek News — Stock fell ~4% on the commentary; CEO also expects lower investment-related revenue in Q3 and slightly higher loan-loss provisions.
At the time of this announcement, GS was trading at $935.83 on NYSE in the Finance sector, with a market capitalization of approximately $272.5B. The 52-week trading range was $740.01 to $1,153.99. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.