But, quarterly net revenues increased 2 percent. Both earnings per share and revenues topped analysts' expectations.
Net earnings applicable to common shareholders for the third-quarter of 2017 decreased 3 percent to $2.04 billion from the prior year's $2.10 billion, while quarterly earnings per share increased to $5.02 from $4.88 in the third quarter of 2016.
Net earnings were $2.128 billion up from $2.094 billion in the prior year.
Operating expenses were $5.35 billion for the third quarter of 2017, essentially unchanged compared with the third quarter of 2016.
Non-compensation expenses were $2.18 billion for the third quarter of 2017, 4% higher than the third quarter of 2016 and 2% higher than the second quarter of 2017.
The increase compared with the third quarter of 2016 was primarily due to higher expenses related to consolidated investments and the firm's online loan and deposit platform.
hese increases were partially offset by lower occupancy expenses. The third quarter of 2016 included $63 million of exit costs on office space.
Net revenues, including net interest income, for the quarter rose 2 percent to $8.33 billion from $8.17 billion in the prior year. Wall Street expected revenues of $7.54 billion for the third-quarter.
Net revenues in Investment Banking were $1.80 billion for the third quarter of 2017, 17% higher than the third quarter of 2016.
Net revenues in Institutional Client Services were $3.12 billion for the quarter, 17% lower than the prior year.
Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.45 billion for the third quarter of 2017, 26% lower than the third quarter of 2016, due to significantly lower net revenues in commodities, interest rate products and credit products and lower net revenues in currencies, partially offset by higher net revenues in mortgages.
Net revenues in Investing & Lending were $1.88 billion for the third quarter of 2017, 35% higher than the third quarter of 2016.
Net revenues in Investment Management were $1.53 billion for the third quarter of 2017, 3% higher than last year.
On October 16, 2017, the board of directors declared a dividend of $0.75 per common share to be paid on December 28, 2017 to common shareholders of record on November 30, 2017. ■
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