Goldman delivers, but pay reined in (a little)

Lloyd Fonzie Blankfein

Goldman Sachs has reported a 50% jump in third-quarter net profit on Thursday as last month's sudden pickup in bond market activity helped to boost trading revenue.

Reuters reports that net income rose to $2.14bn in the three months ended September 30 from $1.43bn a year earlier.

Revenue from bond-trading, a notoriously volatile business, increased 74 percent to $2.17 billion as strong U.S. economic data, stimulus measures by the European Central Bank, and the surprise exit of trading superstar Bill Gross from giant bond-trading firm Pimco jolted what had been a listless market.

Goldman Sachs profit gets big boost from bond market pickup

Bloomberg reports that compensation, the firm’s biggest expense, was $2.8bn, or 33% of revenue, compared with 35% a year earlier. That brought the nine-month ratio to 40%, compared with 41% in same period of 2013.

Goldman Sachs Profit Tops Estimates on Lower Pay Ratio

CEO Lloyd Blankfein said: 'The combination of improving economic conditions in the U.S. and a strong global franchise continued to drive client activity across our diverse set of businesses.

'While conditions and sentiment can shift quickly, the strength of our transaction backlog indicates our clients’ desire to pursue and execute their strategic plans for growth'.


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