12:12 PM EDT, 10/15/2024 (MT Newswires) -- Goldman Sachs' ( GS ) third-quarter results increased year over year and topped Wall Street expectations, as the company recorded double-digit gains in investment banking fees and wealth management revenue.

Per-share earnings climbed to $8.40 for the September quarter from $5.47 a year earlier, exceeding the Capital IQ-polled consensus of $6.92. Revenue rose 7% to $12.7 billion, ahead of the Street's view for $11.76 billion.

"Our overall performance reflected the strength of our client franchise and the improving operating environment," Chief Financial Officer Denis Coleman said on an earnings call, according to a Capital IQ transcript.

Global banking and markets revenue rose 7% to $8.55 billion, buoyed by a 20% jump in investment banking fees to $1.87 billion. "I still believe we have some tailwind dynamics around the investment banking activity," Chief Executive David Solomon told analysts on the call. "While investment banking revenues have improved, and we've made progress, we are still not operating at 10-year averages in (merger and acquisition) and equity volumes."

Within global banking and markets, fixed income, currency and commodities net revenue dropped 12% to $2.96 billion "amid a relatively quieter summer," although the investment bank saw a "meaningful pickup in activity in September," Coleman said on the call. Revenue in equities advanced 18% to $3.5 billion.

Asset and wealth management revenue grew 16% to $3.75 billion, driven by equity investment gains and higher management and other fees. Total assets under supervision increased to $3.103 trillion from $2.680 trillion the year before. Platform solutions revenue plunged 32% to $391 million.

Operating expenses fell to $8.32 billion from $9.05 billion in the prior-year quarter. Goldman Sachs' ( GS ) provision for credit losses rose to $397 million from $7 million.

"The beginning of the rate cut cycle has renewed optimism for a soft landing, which should spur increased economic activity," Solomon said on the call. "More broadly, clients remain highly focused on the trajectory of rates in jurisdictions around the world, the policy implications of global elections, particularly in the US and the high levels of geopolitical instability."

Last month, the Federal Reserve lowered its benchmark lending rate by 50 basis points to a range of 4.75% to 5%, its first cut since March 2020. Policymakers tightened monetary policy from March 2022 through July 2023 to combat inflation.

Price: 518.24, Change: -4.51, Percent Change: -0.86