Goldman Sachs' Securities Services Revenue Falls in Q3

Goldman Sachs’ securities services revenue dropped 10% between the second and third quarters of 2013, while company-wide net revenues fell from $8.6 billion to $6.7 billion.

Securities services revenue for Q3 2013 came in at $340 million, down from $376 million the previous quarter. In the previous year’s third quarter, the company reported securities services net revenue of $392 million, meaning that revenues fell 13% year over year.

The company said in its Q3 2013 report that slow client activity caused the drop overall, and for securities services, the decline from 2012 came mainly from the sale of Goldman Sachs’ hedge fund administration unit to State Street. Still, there was a significant quarterly decline.

Aside from the decrease in revenues, Goldman Sachs increased its capital in the wake of new regulations. The firm raised its Tier 1 capital ratio from 15.6% in Q2 2013 to 16.3% in Q3 2013, while raising its Tier 1 common ratio from 13.5% to 14.2% during the same timeframe.