Wall Street investment bank Goldman Sachs (GS) has reported strong third-quarter financial results due largely to a resurgence in investment banking.
Goldman Sachs announced earnings per share (EPS) of $12.25 U.S., which beat expectations of $11 U.S. a share.
Revenue in the period totaled $15.18 billion U.S., which topped the $14.10 billion U.S. consensus expectation of analysts.
The bank said that its strong results were due largely to resurgent investment banking activities, notably mergers and acquisitions (M&A) and initial public offerings (IPOs).
In all, revenue from investment banking rose 22% in the third quarter from a year earlier. Goldman also benefitted from stock trading with share prices near record highs.
The majority of Goldman Sachs’ revenue comes from trading and investment banking, meaning that the investment bank benefits during boom times on Wall Street.
On Oct. 13, a day before its latest financial results were released, Goldman Sachs announced that it is acquiring Industry Ventures, a venture capital firm, in a deal worth about $1 billion U.S.
Management at Goldman Sachs said the Industry Ventures acquisition will help it to better serve its wealthy clientele.
GS stock has gained 37% this year to trade at $786.78 U.S. per share.
