Goldman Sachs profit jumps 58% as trading revenue surges

Goldman Sachs reported a 57.9 per cent rise in quarterly profit on Tuesday as trading revenue surged.

Net income applicable to shareholders increased to $2.10 billion (€1.9 billion) in the third quarter ended September 30th from $1.33 billion a year earlier, while earnings per share rose to $4.88 from $2.90.

Analysts on average had expected earnings of $3.82 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported figures were comparable.

It was the bank’s second straight rise in quarterly profit after four quarters of decline.

Trading revenue

Revenue from trading fixed-income securities, commodities and currencies rose 34 per cent to $1.96 billion.

Total net revenue rose 19 per cent to $8.17 billion.

Goldman joined JPMorgan Chase, Citigroup and Bank of America in reporting an increase in revenue from trading, which got a boost from Britain's surprise vote to quit the European Union as well as from uncertainty about monetary policy in the United States and elsewhere.

Goldman’s chief rival, Morgan Stanley, is due to report results on Wednesday. – (Reuters)