Business

Goldman Sachs sees profits soar to $2.1bn

Goldman Sachs sign Image copyright Reuters

US investment bank Goldman Sachs has reported a 58% rise in profits for the third quarter of the year.

Its earnings jumped to $2.1bn (£1.7bn) in the three months to the end of September, compared with $1.33bn for the same period a year earlier.

The Wall Street bank attributed the rise in profits to better returns from its trading activities in bonds, commodities and currencies.

"We saw solid performance," said chief executive Lloyd Blankfein.

Revenues across its fixed income, currencies and commodities unit jumped by more than a third to $1.96bn. Trading in these areas has been boosted by the increased market volatility since the UK's Brexit vote.

Earlier this year Goldman said it would cut its overheads by $700m a year, which has led to a 5% cut in its workforce so far this year, amounting to 1,900 staff.

It said costs in third quarter, excluding the pay and bonuses, were down 15% from a year earlier.

The bank said the cost of pay and bonuses had risen 36% to $3,2bn for its 34,900 staff, 6,500 of whom work in the UK.

Goldman Sachs is regarded as one of the world's most influential banks, with many former employees going on to work at the top of other financial institutions in the US, UK and Europe. Bank of England governor Mark Carney is a former Goldman employee.

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