U.S. investment bank Goldman Sachs (GS) has reported better-than-expected third quarter financial results due largely to an increase in bond trading.
Goldman reported Q3 earnings per share (EPS) of $5.47 U.S., which was better than the $5.31 U.S. forecast by Wall Street analysts.
Revenue at the investment bank totaled $11.82 billion U.S. in the quarter, which also beat analyst expectations for $11.19 billion U.S.
The Q3 results were bolstered by Goldman Sachs return to its traditional strengths of dealmaking and trading during the July through September period.
The bank said an increase in bond trading activity as yields spiked over the summer months helped its financial results.
In September, Goldman Sachs was a lead underwriter on several large initial public offerings (IPOs), including those of online grocery retailer Instacart (CART) and British chipmaker Arm Holdings (ARM).
In Q3, trading and advisory services accounted for two-thirds of Goldman Sachs’ revenue, said the bank.
While Goldman Sachs had made efforts to diversify its revenue streams, most of those ventures failed, notably a poorly executed foray into consumer banking.
In late September, Goldman announced the sale of its lending business GreenSky to a group of private equity firms in a deal worth $500 million U.S.
The stock of Goldman Sachs has risen 3% over the last 12 months and currently trades at $314.39 U.S. per share.
