Goldman Sachs chief executive David Solomon said the bank’s third-quarter fixed-income, currencies and commodities business had been a little softer on a relative basis. He made the comments at the Barclays Global Financial Services Conference on 16 September. Equities trading remained strong, according to reports of his remarks. Solomon noted that there were still a few weeks left in September.
Solomon also told investors to expect a much more muted third quarter on the investments line after significant activity in the second quarter. Solomon also indicated that non-compensation expenses would be more than $500 million higher than in the preceding quarter. The Wall Street Journal separately reported the softer fixed-income outlook.
TRADING MIX SHIFTS BEFORE RESULTS
Solomon said overall activity levels had been very high.
Solomon also said provisions would rise because of a couple of idiosyncratic items, Reuters reported. Solomon attributed the higher expenses to elevated client activity, higher transaction costs and accelerated technology investments. Goldman’s shares fell almost 4% after the comments.
FORMAL RESULTS REMAIN THE TEST
The next milestone is Goldman Sachs’ third-quarter earnings release, when the bank will report completed revenue, provisions and expenses.
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