American investment bank Goldman Sachs has reported a significant increase in third-quarter profit, supported by stronger equities trading and investment banking activity.

The bank’s results exceeded analysts’ expectations, offering a positive development as major financial institutions begin reporting their latest quarterly performance.

Goldman Sachs recorded a profit of $5.29 billion, equivalent to $17.01 per share, for the quarter ended September 30.

This compares with $4.10 billion, or $12.25 per share, during the same period last year.

Revenue from equities trading rose by 72% to $6.44 billion. The increase came as market volatility encouraged investors to adjust their portfolios, creating more trading activity for the bank.

The investment banking division also performed strongly, with fees increasing by 21% year over year to $3.22 billion. Total net revenue climbed 23% to $18.68 billion, while revenue from fixed income, currencies, and commodities declined slightly.

Following the announcement, Goldman Sachs shares rose by approximately 3.6% in early trading. The results highlight how investment banks can benefit from increased trading and dealmaking, even when financial markets are experiencing uncertainty.

Source: Reuters.