Goldman Sachs Group Inc. posted a second straight quarter of real estate writedowns and a continued dealmaking slump, leaving the firm’s profitability at about half the level it’s targeting.
Property investments drove a $212 million loss in the equity book last quarter and an additional $358 million in impairments contributed to a 33% drop in profit. Trading revenue that surpassed analysts’ estimates helped soften the blow, but the shares sank as much as 2.1%.
Goldman suffered its eighth straight quarterly profit drop, and the firm’s return-on-equity of 7.1% remains well below the mid-teens target it has set for itself. Chief Executive Officer David Solomon is trying to revive the bank’s stock after backing off from a consumer-banking expansion and refocusing efforts on core business lines.
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