Goldman Sachs Shines with Third-Quarter Profit Surge

Goldman Sachs' third-quarter profits exceeded expectations due to a revival in bond sales and mergers. The bank's shares rose over 3% as investment banking fees increased and traditional sectors stayed strong despite challenges like credit losses. Asset management flourished too, with record assets under supervision.

Goldman Sachs has reported a significant profit surge in the third quarter, surpassing market expectations, primarily driven by a rebound in bond sales, stock offerings, and mergers. The bank's shares responded positively, rising more than 3% in premarket trading. It aligned with JPMorgan Chase, which also benefited from a revival in investment banking as corporate clients displayed renewed confidence in the economic outlook.

Goldman CEO David Solomon highlighted the firm's robust performance as a reflection of its strong franchise in an improving market landscape. Strong U.S. job and wage growth and a Federal Reserve interest-rate cut encouraged companies to engage in more deals, boosting investment banking fees by 20% to $1.87 billion. The bank achieved higher revenues from equity underwriting due to increased secondary share sales.

However, Goldman Sachs faced a dip in fixed income trading and booked $397 million in credit loss provisions. It is also exiting its credit card partnership with General Motors and is on shaky ground with Apple. Despite these challenges, the bank's overall profit jumped 45% year-on-year, showcasing growth in asset management and a record $3.1 trillion in assets under supervision.

(With inputs from agencies.)