Goldman Sachs reports 50% jump in profit in Q3 2014
Goldman Sachs has reported a 50% jump in profit in Q3 2014 after a sudden jolt in bond market activity helped boost revenues.
The investment bank reported net income rose to $2.14 billion in the three months to the end of September.
That compared with $1.43 billion for the same period a year earlier.
Revenue from bond-trading leapt 74% to $2.17 billion, as Goldman benefited from the surprise exit of bond market supremo, Bill Gross, from Pimco.
The departure of Bill Gross from Pimco, the world’s largest bond fund, prompted investors to withdraw $23.5 billion from the company.
Goldman Sachs has reported a 50 percent jump in profit in Q3 2014 after a sudden jolt in bond market activity helped boost revenues
Strong US economic data in September and stimulus measures introduced by the European Central Bank (ECB), also helped jolt what had been a lacklustre bond market into life last month.
Total net revenue at the bank rose 25% to $8.39 billion.
“The combination of improving economic conditions in the US and a strong global franchise continued to drive client activity across our diverse set of businesses,” Goldman’s chairman and chief executive Lloyd Blankfein said in a statement.
Goldman Sachs has also been a big beneficiary of rising stock markets this year, helped by its advisory work on large deals including the $25 billion initial public offering of Chinese tech firm Alibaba on the US stock market.
Revenue from investment management, a business Goldman has been trying to build up, rose 20% to $1.46 billion.
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