Goldman Sachs clocks up best quarter in ten years thanks to pandemic trading frenzy
Booming markets helped Goldman Sachs clock up its most profitable quarter in a decade.
While the coronavirus crisis has plunged the global economy into a brutal recession, volatility on financial markets has triggered a trading frenzy.
That has benefited Wall Street banks among others as investors shift their portfolios to sell certain assets and buy others in a bid to make money.
Goldman Sachs said revenues in its global markets division jumped 29 per cent in the third quarter of the year to £3.5billion. Fixed income revenues were up 49 per cent to £1.9billion
Goldman said revenues in its global markets division jumped 29 per cent in the third quarter of the year to £3.5billion. Fixed income revenues were up 49 per cent to £1.9billion.
The strong performance pushed overall revenues to £8.3billion in the three months to September – up 30 per cent on the same period last year.
Profits jumped 94 per cent to £2.8billion while return on equity – a key measure of profitability – hit 17.5 per cent. This was the highest level since 2010.
The 17.5 per cent return on equity far exceeded the 13 per cent promised by chief executive David Solomon in January when he laid out his plans to revive the 150-year-old banking giant.
Credit Suisse analyst Susan Roth Katzke hailed the results as ‘simply stunning’.