Goldman Sachs announced a significant rise in its third-quarter earnings on Tuesday, reporting $3 billion in profits—well above what Wall Street analysts had predicted.

How did the investment bank achieve this? While an improving economic environment played a role, so did a strategic financial move made by Goldman’s CEO, David M. Solomon, just weeks prior.

In early September, Solomon publicly expressed concern, stating that many areas of the bank’s business were struggling during the third quarter, hinting that upcoming earnings might fall short.

However, the results were much better than expected—not just for Goldman but for two other major banks reporting earnings that same day.

A surprising earnings beat

Goldman generated nearly $13 billion in revenue in the third quarter, surpassing estimates by over $1 billion, although its stock price remained steady.

The bank’s $3 billion quarterly profit was on par with the previous quarter, despite Solomon’s earlier warning that profits might not hold up as well as in the first half of the year.

A bank executive, speaking on condition of anonymity, mentioned that trading activity—an essential component of investment banking—exceeded expectations in September, the same month the Federal Reserve announced a major interest rate cut.

It’s been a slow year for mergers and acquisitions, a key source of fees for Goldman and other investment banks. However, the executive expressed some optimism, noting that “the global economy is trending toward above-average growth.”

These mixed feelings were also echoed by JPMorgan Chase last week when it reported strong financial results but highlighted potential risks ahead.

A brief note on the election

Goldman Sachs executives have historically been influential in government administrations, earning the nickname “Government Sachs.” However, this year, the bank has made efforts to stay out of the presidential race.

Concerns arose within Goldman’s leadership after Vice President Kamala Harris claimed the bank’s research suggested her economic proposals would boost the economy while former President Donald J. Trump’s plans would harm it.

This wasn’t entirely accurate: Goldman’s research indicated that Harris’s plans would be more beneficial than Trump’s, but his were not necessarily harmful. Goldman spokesman Tony Fratto clarified last week that the analysis showed only modest differences—Harris’s proposals could lead to slightly faster growth, with some uncertainty around what either candidate might ultimately implement.

Credit cards: A slow exit from consumer banking

In what feels like a rerun, Goldman continues to unwind its consumer banking ventures. This week, the bank sold its General Motors-branded credit cards to Barclays and plans to exit its Apple-branded cards, though no further updates were provided on Tuesday.

Goldman set aside $397 million last quarter for potential credit losses, a sharp increase from both the previous quarter and the same period last year, signaling ongoing challenges in that part of the business.

Bank of America and Citi report earnings

Bank of America also reported its latest earnings on Tuesday, beating analysts’ expectations. Although its third-quarter profits dropped by more than 10% compared to last year, the decline was smaller than anticipated, thanks to a boost in trading revenue and investment banking fees.

“We’re feeling confident across the board,” said Brian Moynihan, Bank of America’s CEO, as the bank’s stock rose by 1%.

Meanwhile, Citi’s earnings, also released Tuesday, showed a smaller-than-expected profit decline, but the bank set aside significant funds to cover potential future credit card losses. “We are already a very different Citi,” said CEO Jane Fraser. Citi’s stock, however, dropped by 5%.