Goldman Sachs CEO David Solomon announced on September 16 at the Barclays Global Financial Services Conference that the bank expects non-compensation expenses to rise by more than $500 million in the third quarter compared to the second quarter of 2026.
Solomon noted a divergence in performance across trading divisions. While the equities business maintains the momentum seen in the second quarter, the fixed income, currencies, and commodities (FICC) division is showing signs of softening.
In the second quarter of 2026, Goldman Sachs reported net revenues of $20.34 billion and net earnings of $6.63 billion. The Global Banking and Markets division contributed $15.52 billion in revenue, with equities accounting for $7.42 billion.
Operating expenses for the second quarter reached $11.67 billion, marking a 26% increase year-over-year. The bank previously attributed this rise to higher compensation, benefits, and transaction-based costs.
The market awaits the third-quarter earnings report, which is expected in mid-October. Investors are focused on whether the bank can maintain its revenue levels to offset the projected increase in non-compensation expenses and clarify if these costs are structural.
