Goldman’s focus on bond trading pays off as profit soars

Goldman Sachs reported a 50 per cent jump in quarterly profit as last month’s pick-up in bond market activity helped to boost trading revenue, showing that banks sticking with the notoriously volatile business can reap big rewards.

Goldman's revenue from bond-trading soared 74 per cent to $2.17 billion in the third quarter as strong US 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’s shares were down 2 per cent at $173.63. Stocks have been sliding in recent days on worries about the health of the global economy, and bank shares have been hit hard.

Total net revenue rose 25 per cent to $8.39 billion. – (Reuters)