Goldman Sachs quarterly profit rises on equities strength

Goldman Sachs posted a higher third-quarter profit, driven by strong performance in its equities trading business and steady investment banking fees. The firm's equities revenue jumped 72% to $6.44 billion, benefiting from volatile markets and investor portfolio reshuffling. This surge helped offset a 1% decline in revenue from its fixed income, currency, and commodities (FICC) business, which brought in $3.47 billion.

Despite a 41% drop in M&A activity in the third quarter, Goldman's investment banking division saw fees rise 21% year-on-year to $3.22 billion, supported by debt and equity underwriting and advisory services. The bank acted as lead bookrunner for Intel's $23 billion equity offering and global coordinator for SK Hynix's $26.5 billion US offering.

The asset and wealth management division, including its private credit fund, reported a 14% revenue increase. The bank has been expanding this segment to achieve steadier earnings and reduce reliance on its more volatile trading and investment banking units. Total revenue for the quarter rose 23% to $18.68 billion.