Goldman Sachs Shares Slip as CEO Flags FICC Weakness and Rising Costs
Goldman Sachs CEO David Solomon reported softer fixed-income trading results and a $500 million increase in quarterly expenses, causing the bank's stock to drop by as much as 4%.
Goldman Sachs shares fell by as much as 4% on September 16 after CEO David Solomon highlighted underperformance in the firm's fixed-income, currencies, and commodities division, known as FICC. The decline in the bank's stock also impacted broader bank stocks.
Solomon noted that FICC results for the third quarter have been softer than in previous periods. This performance contrasts with the bank's equities trading division, which Solomon described as notably strong.
The firm is also facing a projected increase in non-compensation expenses of more than $500 million quarter-over-quarter. Goldman attributed this rise in costs to higher client activity and accelerated investments in technology.
In addition to the trading and expense updates, Solomon indicated a likely slowdown in investment banking activity for the third quarter, marking a shift from the deal-making momentum seen in the prior quarter.
The bank's performance outlook differs from competitors. JPMorgan Chase is projecting mid-to-high teens percentage growth in trading revenue for the third quarter of 2026, while Bank of America is forecasting relatively flat results with lackluster fixed-income performance.
Solomon stated that the remaining weeks of September will be critical in determining the final results for the third quarter.
