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Goldman Sachs reports 94% rise in quarterly profit as bond trading surges

Bond trading revenue surged 49% to $2.5 billion, while equities trading rose 10% to $2.05 billion.

Goldman Sachs | Goldman Sachs report | Trading


Goldman Sachs
A view of the Goldman Sachs stall on the floor of the New York Stock Exchange in New York (Photo: Reuters)

Group Inc reported a 94 per cent rise in quarterly profit on Wednesday that swept past estimates, driven by strength in its bond business and lower provisions for credit losses.

With a 29 per cent jump in revenue, Goldman easily outperformed rivals JPMorgan Chase & Co and Citigroup Inc as financial market volumes broke records in a recovery from a coronavirus-led selloff.

Bond revenue surged 49 per cent to $2.5 billion, while equities trading rose 10 per cent to $2.05 billion.

The bank’s net earnings applicable to common shareholders surged to $3.5 billion in the quarter ended Sept. 30 from $1.8 billion a year ago. Earnings per share doubled to $9.68 from $4.79 a year earlier.

Analysts had expected a profit of $5.57 per share, on average, according to the IBES estimate from Refinitiv.

Total net revenue jumped 30 per cent to $10.78 billion and beat estimates of $9.5 billion.

Unlike rivals such as JPMorgan and Bank of America Corp, Goldman has a relatively small consumer business. Although Goldman is trying to build out its consumer bank, the lack of exposure has protected it from loan defaults during the pandemic.

This quarter, Goldman set aside $278 million to cover loans that go bad, compared with $1.59 billion in the same period last year.

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First Published: Wed, October 14 2020. 20:40 IST