Bumper profits from its trading arm helped Goldman Sachs (NYSE:GS) lift its quarterly net earnings by 47%, mirroring gains at Wall St’s other giant banks.
“We saw solid performance across the franchise that helped counter typical seasonal weakness,” said Lloyd Blankfein, chief executive.
Net profits for the three months to September were US$2.09bn, or $4.88 a share (US$1.43bn or $2.90). Revenue rose 19% to US$8.17bn.
The results were much better than the market expected, with trading revenues 17% higher at US$3.75bn (from US$3.21bn), fixed income, currency and commodity trading 34% better at an underlying US$1.96bn and stock-trading revenue 2% higher at US$1.78bn.
Staff costs rose 36% to US$3.21bn compared to a year ago, reflecting the higher revenues said Goldman.
For the nine months so far this year, net earnings were 5% lower at US$5.05bn.
Shares rose 2% to US$172.53.
Story by ProactiveInvestors