Goldman profits surge amid investment banking rebound

Goldman Sachs reported a 45% surge in quarterly profits on Tuesday, boosted by a rebound in dealmaking that beat analysts’ expectations.The Wall Street titan pointed to a 20% jump in investment banking fees year-on-year to $1.87 billion — driving third-quarter profits of $2.99 billion, or $8.40 per share, up from $2.06 billion, or $5.47 per share, a year earlier.Revenues rose 7% to $12.7 billion, the bank said. The results are well above estimates complied by the London Stock Exchange Group that predicted earnings per share of $6.89 a share and revenues of $11.8 billion.CEO David Solomon said on Tuesday that the bank’s financial results for the period ending Sept.30 boosted, in part, by “an improving operating environment.”The bank has tried to refocus on its core business of investment banking and trading after a botched foray into the world of consumer banking, with executives on Tuesday disclosing a $415 million pretax hit in the third quarter from that unit.

The price of a share in the banking giant was recently up 0.5% at $525.25 in early trading on the New York Stock Exchange, having closed at $522.75 on Monday evening.Bank of America also announced a rebound in investment banking activity, but the bank posted a 12% drop in net income due to losses on bad loans and higher expenses.BofA recorded profits of $6.9 billion, or 81 cents a share, for the period ending Sept.30.CEO Brian Moynihan called the earnings “solid,” citing growth in investment banking, asset management fees, and sales and trading revenue.“We also continue to benefit from our investments in the business,” Moynihan said in a statement.Meanwhile, Citigroup, the third biggest lender in the US, posted a smaller-than-expected drop in profit for the third quarter thanks to gains in investment banking, sending its shares more than 2% higher in premarket trading on Tuesday.The bank headed by CEO Jane Fraser said its net income dropped to $3.2 billion, or $1.51 per share, compared ...