December 02, 2022
After fees from acquisitions during the third quarter fell 14%, trading of US government bonds dropped 6% and commodities lost the most in two decades, the biggest securities firms show no signs of forfeiting their profitability.
“You’re going to see much better numbers,” said Kyle Cerminara, an analyst at Baltimore-based T Rowe Price Group, which oversees about $300 bn of assets and owns shares of all five companies.
The record third-quarter revenue and fifth consecutive quarterly increase in combined profits at Goldman Sachs Group, Lehman Brothers Holdings and Bear Stearns are changing the “perception a little bit about the resilience of earnings for this industry,” said Guy Moszkowski, an analyst at Merrill Lynch, who raised his estimates for Goldman and Lehman’s ’07 net income as they reported earnings last week.
