AGL 8.00 Decreased By ▼ -0.15 (-1.84%)
ANL 11.32 Increased By ▲ 0.23 (2.07%)
AVN 83.45 Decreased By ▼ -0.25 (-0.3%)
BOP 5.85 No Change ▼ 0.00 (0%)
CNERGY 5.85 Increased By ▲ 0.20 (3.54%)
EFERT 80.10 Decreased By ▼ -0.12 (-0.15%)
EPCL 67.29 Increased By ▲ 0.01 (0.01%)
FCCL 15.20 No Change ▼ 0.00 (0%)
FFL 7.04 Decreased By ▼ -0.19 (-2.63%)
FLYNG 7.77 Decreased By ▼ -0.29 (-3.6%)
GGGL 11.90 Decreased By ▼ -0.10 (-0.83%)
GGL 17.65 Decreased By ▼ -0.06 (-0.34%)
GTECH 9.18 Increased By ▲ 0.40 (4.56%)
HUMNL 7.20 Decreased By ▼ -0.03 (-0.41%)
KEL 3.50 Decreased By ▼ -0.24 (-6.42%)
LOTCHEM 30.95 Decreased By ▼ -1.15 (-3.58%)
MLCF 28.52 Decreased By ▼ -0.48 (-1.66%)
OGDC 85.20 Decreased By ▼ -0.85 (-0.99%)
PAEL 17.11 Decreased By ▼ -0.29 (-1.67%)
PIBTL 6.15 Decreased By ▼ -0.15 (-2.38%)
PRL 19.84 Increased By ▲ 0.74 (3.87%)
SILK 1.29 Increased By ▲ 0.10 (8.4%)
TELE 12.05 Decreased By ▼ -0.20 (-1.63%)
TPL 9.16 Decreased By ▼ -0.02 (-0.22%)
TPLP 20.19 Decreased By ▼ -0.51 (-2.46%)
TREET 27.10 Increased By ▲ 0.15 (0.56%)
TRG 97.30 Decreased By ▼ -0.45 (-0.46%)
UNITY 22.83 Decreased By ▼ -0.17 (-0.74%)
WAVES 13.29 Decreased By ▼ -0.81 (-5.74%)
WTL 1.45 Increased By ▲ 0.14 (10.69%)
BR100 4,361 Decreased By -27.2 (-0.62%)
BR30 16,009 Decreased By -90.5 (-0.56%)
KSE100 43,482 Decreased By -195.1 (-0.45%)
KSE30 16,476 Decreased By -56.6 (-0.34%)
Business & Finance

Goldman Sachs thrives on global dealmaking frenzy to post bumper profit

  • Net earnings applicable to common shareholders rose to $5.28 billion in the quarter ended Sept. 30
Published October 15, 2021

Goldman Sachs Group Inc reported a 66% surge in third-quarter earnings that swept past expectations on Friday, as Wall Street's biggest investment bank rode a record wave of M&A activity that has also boosted profit for other big US banks.

Net earnings applicable to common shareholders rose to $5.28 billion in the quarter ended Sept. 30, from $3.23 billion a year ago.

Earnings per share rose to $14.93 from $8.98 a year earlier. Analysts on average had expected a profit of $10.11 per share, according to the IBES estimate from Refinitiv.

Goldman, which generates a third of its revenue from its investment bank through lucrative fees from advising on deals, reported a surge in advisory fees, as large companies and financial sponsors embarked on a slew of transformative deals.

Total revenue surged 26% to $13.61 billion in the quarter.

Goldman Sachs to raise pay for junior investment bankers

Global M&A volumes have shattered all-time records, with advisors struggling to cope with transaction volumes never seen before.

Deals worth more than $1.5 trillion were signed by the world's biggest investment banks in the September quarter, with Goldman comfortably topping the league tables for worldwide M&A advisory, as per Refinitiv data.

The league tables rank financial services firms on the amount of M&A fees they generate.

Overall financial advisory revenue jumped 225% to $1.65 billion, while underwriting revenue surged 33% to $1.90 billion.

Goldman's investment bank had its second best quarter ever, with revenue of $3.70 billion, driven by strength in advisory and underwriting fees.

The global markets business, which now houses the trading business and accounts for roughly 41% of overall revenue, reported revenue of $5.61 billion, up 23%.

Unlike rivals such as JPMorgan and Bank of America , Goldman has a relatively smaller consumer business, which has limited its exposure to loan defaults and allowed it to focus on investment banking.

With dealmakers the world over drowning in a flurry of deals, Goldman also cashed in big-time as companies rushed to raise capital, refinanced debt and sold new stock.

Shares of the investment bank were up nearly 2.5% in premarket trading.

Comments

Comments are closed.