Goldman Sachs (GS) has reported a sharp drop in third-quarter profit, as concerns over a stagnating global economy affected its bond trading revenues.
The investment bank said that net income had fallen to $1.33 billion from $2.14 billion over the same period, a loss of 38%. Earnings per share correspondingly dropped to $2.90 per share from $4.57 per share a year earlier, while revenues dropped to $6.86 billion from $8.39 billion a year ago.
Consensus analyst estimates compiled by Thomson Reuters had the company delivering earnings per share of $2.91 on $7.13 billion in revenue.
CEO Lloyd Blankfein pointed to the global slowdown as a key reason for the company-wide drop in its earning figures. “We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth,” he said in a statement. As evidence, Goldman Sachs’ fixed income, currency and commodities trading division reported revenues that were 33% lower than the third quarter of last year.
This follows recent announcements from Bank of America and JP Morgan, who both saw an 11% drop in revenues in their FICC trading. The revelation that these trading numbers are lower across Wall Street could also be worthwhile evidence that Dodd-Frank reforms aimed at imposing stricter regulations on banks are paying off, as Fortune detailed recently.