Mubasher: Goldman Sachs on Tuesday reported its earnings for the third quarter of this year, which missed Wall Street forecasts, on weaker results in investing and lending and investment banking businesses.

The New York bank generated $1.88 billion in Q3-19, compared with $2.52 billion in Q3-18, with diluted earnings per share (EPS) falling by 24% year-on-year to $4.79.

The lender’s net revenues totalled $8.32 billion in the period between July and September, versus $8.82 billion in the year-ago period.

Refinitiv expectations were for EPS of $4.81 on revenue of $8.31 billion during the third quarter.

In addition, the bank set aside $291 million for credit losses in the quarter, compared with $174 million in the same quarter last year.

Three of Goldman’s four main divisions recorded earnings drop.

The bank’s investment banking unit produced $1.69 billion in revenues in Q3-19, falling by 15% year-on-year from $1.98 billion in Q3-18, due to lower advisory and underwriting fees.

Total investing and lending revenue fell by 17% to $1.68 billion during the quarter, as equity securities dropped by 40% to 662 million.

Wall Street's largest banks were in the face of challenges in expanding revenues, against the backdrop of an ongoing US-China trade conflict and worries about more interest rate cuts by the US Federal Reserve.

“Our results through the third quarter reflect the underlying strength of our global client franchise and its ability to produce solid results in the context of a mixed operating environment,” Goldman’s CEO David Solomon said.