Goldman Sachs earnings jump on trading gains
GOLDMAN Sachs posted a large jump in third-quarter earnings, boosted by big gains in trading and in the value of the firm’s own equity investments.
Net profit for the quarter ending September 30 surged 58 percent to US$2.1 billion. Revenues rose 19pc to $8.2 billion compared with the previous period.
A key strength was trading in securities tied to interest rates, compensating for lower net revenues in some other types of investments. Revenues fell for trading in foreign exchange and commodities and rose modestly in equities.
The other standout division was Goldman’s own investments, which jumped in value thanks to gains in global stock markets. Net revenues more than doubled to $1.4 billion.
Goldman garnered lower revenues advising on mergers and acquisitions, offset by higher revenues in debt underwriting.
Goldman’s earnings and revenues both topped analyst expectations, adding to a trend of large US banks benefitting from a pickup in trading and moderate US economic growth.