U.S. investment bank Goldman Sachs (GS) has reported third-quarter financial results that blew past analysts’ consensus forecasts.
The New York-based bank reported earnings per share (EPS) of $8.40 U.S. compared to $6.89 U.S. that had been expected on Wall Street.
Revenue in the summer quarter totaled $12.70 billion U.S., which topped the $11.80 billion U.S. that was estimated among analysts.
Goldman Sachs said its strong results were due to a resumption of deals on Wall Street, with the number of mergers and acquisitions (M&A) and initial public offerings (IPOs) increasing.
Investment banking fees at Goldman Sachs increased 20% year-over-year to $1.87 billion U.S. during Q3. At the same time, revenue from stock trading amid the current bull market rose 18%.
Goldman’s wealth management division also got a lift during the quarter from rising asset values across markets as stocks rise and interest rates decline.
The bank also benefited from easy comparisons vis-à-vis a year earlier when it booked sizeable write downs on its consumer business and real estate investments.
The investment bank is renewing its focus on its core businesses of dealmaking and stock trading and getting out of consumer banking.
Goldman Sachs is in the process of exiting its credit card venture with automaker General Motors (GM) and technology giant Apple (AAPL).
JPMorgan Chase (JPM) is in talks to replace Goldman as Apple’s credit card partner.
The stock of Goldman Sachs has increased 35% so far this year and currently trades at $522.75 U.S. per share.