Goldman Sachs’ quarterly profit jumps 45% on investment banking strength

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Goldman Sachs’ quarterly profit jumps 45% on investment banking strength
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The bank’s total profit was $2.99-billion, or $8.40 per share, for the three months ended Sept. 30, compared with $2.06-billion, or $5.47 per share, a year ago

profit jumped 45 per cent in the third quarter as the investment bank benefited from a rebound in deal making., which also gained from an investment banking revival, as corporate clients became more confident in the economic outlook, spurring debt and equity offerings.

Goldman’s investment banking fees jumped 20 per cent to $1.87-billion. Leveraged finance, which refers to loans made to risky ventures like funding buyouts, and investment-grade activity powered a jump in debt underwriting. The bank, however, booked $397-million in provisions for credit losses compared with $7-million a year ago, driven by higher charge-offs in its credit card portfolio.

Total profit was $2.99-billion, or $8.40 per share, for the three months ended Sept. 30, compared with $2.06-billion, or $5.47 per share, a year ago.

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