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.

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.