Goldman Sachs earnings surge on trading
New York (AFP)
Goldman Sachs posted a big jump in third-quarter earnings Tuesday, boosted by significant 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 $2.1 billion.
Revenues rose 19 percent to $8.2 billion compared with the year-ago 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 in this business 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 benefiting from a pickup in trading and moderate US economic growth.
Shares of Dow member Goldman rose 1.5 percent to $171.61 in pre-market trade.
© 2016 AFP