Goldman Sachs’ profits jump 60% helped by deal-making frenzy
Goldman Sachs’ profits jumped 60% in the third quarter, as the dealmaking bonanza that dominated financial markets this summer brought in hundreds of millions of dollars in fee revenue for the investment bank.
The New York-based firm said Friday that it earned a profit of $5.28 billion, or $14.93 per share, compared with a profit of $3.23 billion, or $8.98 a share, in the same period a year earlier. The results were significantly better than the $10.10-per-share profit that analysts had been expecting, according to FactSet.
Much of the jump in profit came from Goldman’s advisory and investment banking business, where the firm helps companies go public or buy other companies. The firm brought in $3.7 billion in investment banking revenue last quarter, up 88% from a year earlier.
The economic recovery after the pandemic has pushed many companies to seek new ways to grow, which has gone straight to Goldman’s bottom line. Just in the U.S., there have been 94 initial public offerings that have raised $28 billion, the highest number of IPOs for a third quarter since 2000, according to Renaissance Capital.