Goldman Sachs Group Inc. (NYSE:GS) posted an increase in third quarter earnings that exceeded market forecasts, driven by growth in investment banking revenue.
Traders reacted positively to the results, sending shares up 1.36% to US$245.70 each in US pre-market trading.
Earnings per share rose to U$5.02 from US$4.88 the same quarter a year ago, ahead of analysts’ expectations of US$4.17.
Net revenue increased to US$8.3bn from US$8.2bn last year, compared to estimates of US$7.5bn.
Investment banking revenue grew 17% year-on-year in the third quarter to US$1.8bn, more than the US$1.63bn predicted by analysts and boosted by financial advisory revenue.
Revenue from trading of fixed income, currencies and commodities (FICC) dropped 26% to US$1.45bn but better than the US$1.38bn anticipated. The business was hit by lower net revenues in commodities, interest rate products, credit products and currencies, partially offset by an increase in mortgage revenues.
Equities revenue declined 7% to US$1.67bn against forecasts of US$1.77bn, reflecting a poor performance in derivatives.
“Our overall performance this year has been solid and provides a good foundation on which to execute and deliver our growth initiatives," said Goldman chief executive, Lloyd Blankfein.
Goldman has achieved net revenues of US$24.24bn so far this year, up 8% on the previous year, suppported by debt underwriting, which has generated a record US$2.03bn.