Goldman Sachs' profits jump 60% helped by deal-making frenzy

<p><p>NEW YORK – Goldman Sachs’ profits jumped 60% in the third quarter, as the deal-making bonanza that dominated financial markets this summer brought in hundreds of millions of dollars in fee revenue for the investment bank.</p></p><p><p>The New York-based firm said Friday that it earned a profit of $5.28 billion, or $14.93 per share, compared with a profit of $3.23 billion, or $8.98 a share, in the same period a year earlier.</p></p><p><p>The results were significantly better than the $10.10-per-share profit that analysts had been expecting, according to FactSet.</p></p><p><p>Much of the jump in profit came from Goldman’s advisory and investment banking business, where the firm helps companies go public or buy other companies.</p></p><p><p>The firm brought in $3.7 billion in investment banking revenue last quarter, up 88% from a year earlier.</p></p><p><p>The economic recovery after the pandemic has pushed many companies to seek new ways to grow, which has gone straight to Goldman’s bottom line.</p></p><p><p>Just in the U.S., there have been 94 initial public offerings that have raised $28 billion, the highest number of IPOs for a third quarter since 2000, according to Renaissance Capital.</p></p><p><p>Goldman’s results echoed the strong results posted by its rival Morgan Stanley, which also reported a big jump in profits <span class=”print_trim”>due to its advisory business.</span></p></p><p><p><span class=”print_trim”>Citigroup and JPMorgan Chase also reported profit gains due to their investment banking businesses.</span></p></p><p><p><span class=”print_trim”>Goldman also had a strong quarter in trading, although the gains weren’t as impressive as in the advisory business.</span></p></p><p><p><span class=”print_trim”>The firm’s trading desks brought in $5.61 billion in the quarter, up 23% from a year earlier.</span></p></p><p><p><span class=”print_trim”>While trading of bonds, commodities and currencies was relatively stable, Goldman said it saw its stock trading revenues rise 51% from a year earlier.</span></p></p><p><p><span class=”print_trim”>Total revenues across the company were $13.61 billion, much better than the $11.72 billion that analysts had expected.</span></p></p><p><p><span class=”print_trim”>Shares of Goldman Sachs rose 1.9% in morning trading</span>.</p></p>