Goldman Sachs Soars: Investment Banking Drives 45% Profit Jump!

Goldman Sachs reported a 45% increase in profit for the third quarter, fueled by a resurgence in dealmaking and increased investment banking fees. Despite challenges in its consumer business, the bank saw notable gains in equity and debt underwriting. Investment banking remains a key focus area.

Goldman Sachs experienced a 45% surge in profits during the third quarter, attributed to a revival in dealmaking activity. Joining the ranks of JPMorgan Chase, it saw increased confidence among corporate clients spurring new debt and equity offerings.

As CEO David Solomon stated, the results underscore the strength of their franchise amid an improving economic backdrop. Investment banking fees rose by 20% reaching $1.87 billion, thanks to the leverage finance and investment-grade initiatives, driving debt underwriting performance.

Despite sustained losses in its consumer banking division, the company shifted focus back to traditional investment banking activities. Total profit increased to $2.99 billion, with Goldman also benefiting from favorable year-on-year comparisons following last year's writedowns in consumer and real estate sectors.

(With inputs from agencies.)