Goldman Sachs profits soar on bond market resurgence
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Version 0 of 1. Goldman Sachs said its third-quarter profit jumped 48 percent as revenue from trading bonds and currencies rose. Third-quarter net income climbed to $2.24 billion from $1.52 billion a year earlier, Goldman said early Thursday. The bank also raised its dividend by a nickel to 60 cents per share. On a per-share basis, that worked out to earnings of $4.57, beating analysts' forecasts of $3.21, according to FactSet. The investment bank, based in New York, posted quarterly revenue of $8.39 billion, up 25 per cent over the same period last year and topping Wall Street's forecasts. Analysts expected $7.82 billion, according to FactSet. Strong results from trading bonds, commodities and currencies played a starring role. Revenue from that group surged 74 percent to $2.17 billion. Expenses increased, however. Compensation, the bank's biggest single cost, was $2.80 billion, up 18 per cent from the year before. Goldman Sachs shares have fallen slightly since the beginning of the year, while the Standard & Poor's 500 index has gained almost 1 percent. Over the last 12 months, the bank's stock has climbed 9 per cent. Additional reporting PA |