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Goldman Sachs Reports Spikes in Net Earnings, Net Share Price

Goldman Sachs Third Quarter Earnings [1]The Goldman Sachs Group, Inc. [2] reported a third quarter net revenue of $8.39 billion and net earnings of $2.24 billion, according to the company's Q3 earnings statement [3] released on Thursday. The net earnings total is a 50 percent jump from Q3 2013, when, the investment bank reported net earnings of $1.43 billion.

For the three-month period ending on September 30, 2014, Goldman Sachs reported diluted earnings per common share of $4.57, which is up from $4.10 reported for Q2 and $2.88 reported for Q3 2013. The company reported an annualized return on common shareholders' equity of 11.8 percent for the third quarter and 11.2 percent year-to-date for the first three quarters.

"The combination of improving economic conditions in the U.S. and a strong global franchise continued to drive client activity across our diverse set of businesses," said Lloyd C. Blankfein, Chairman and CEO of Goldman Sachs. "While conditions and sentiment can shift quickly, the strength of our transaction backlog indicates our clients’ desire to pursue and execute their strategic plans for growth."

Goldman Sachs saw 2 percent increases in both book value per common share and tangible book value per common share in Q3 up to $161.38 and $151.70, respectively. The firm saw assets under supervision reach a record level of $1.15 trillion in Q3 with net inflows of $20 billion that include $13 billion in long term assets under supervision.

The Q3 earnings report also indicated that Goldman Sachs ranked first in w0rldwide announced and completed mergers and acquisitions year-to-date in 2014, and also ranked first in worldwide equity and equity-related offerings and common stock offerings for the first nine months of 2014.

Assets under supervision increased to a record $1.15 trillion for Goldman Sachs, with net inflows during the quarter of $20 billion, including $13 billion in long-term assets under supervision. Meanwhile, the firm increased its quarterly dividend to $0.60 per share on October 15, 2014.