Goldman Sachs profits plunged 38 percent in Q3 2015, its second straight quarterly drop.
Revenue fell in all of the bank’s major businesses with the exception of investment banking which was helped along by a surge in takeovers.
The company was hit in areas such as investment management to bond, and currency and commodities trading.
“We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth,” Chief Executive Lloyd Blankfein said in a statement on Thursday.
The company also revealed that revenue from fixed-income, currency and commodity (FICC) trading, fell 33 percent to $1.46 billion, the biggest year-over-year drop since the third quarter of 2013.
Bond trading also hurt JPMorgan Chase & Co, Bank of America Corp., and Citigroup Inc. However, they are less dependent on these deals because unlike Goldman Sachs, they are deposit-taking banks
Goldman’s shares reversed losses in late day trading and gained 3 percent as the broader market rallied.
The bank said its net income applicable to common shareholders fell 38 percent – to $1.33 billion, or $2.90 per share, from $2.14 billion, or $4.57 per share, a year earlier.
Analysts had expected earnings of $2.91 per share. Net revenue fell 18.2 percent to $6.86 billion, far short of the average estimate of $7.12 billion.
Return on equity also stumbled to 7 percent from 11.8 percent in the same quarter last year – far short of the 30 percent range the bank achieved before the financial crisis.