Oct 14 (Reuters) - Goldman Sachs' ( GS ) quarterly
profit jumped more than 37% on Tuesday as its investment bankers
earned higher advisory fees and traders capitalized on active
markets.
Its prediction for a banner year for dealmaking has
materialized as corporations revive plans for mergers and
listings.
Investment banking fees rose to $2.66 billion in the quarter
ended September 30, compared with $1.87 billion a year ago.
The growth was fueled by a 60% surge in advisory fees, while
debt and equity underwriting fees also gained. Rival JPMorgan
Chase ( JPM ) also reported robust investment banking numbers
earlier in the day.
Global M&A volumes for the first nine months of the year
crossed $3.43 trillion, with nearly 48% of it in the U.S.,
according to data from Dealogic.
The period also saw the highest average M&A volume globally
and in the U.S. since 2015, in line with CEO David Solomon's
prediction at last year's Reuters NEXT conference.
Goldman was among the joint book-running managers on marquee
initial public offerings in the quarter, including design
software firm Figma ( FIG ), Swedish fintech Klarna ( KLAR ),
and space tech firm Firefly Aerospace ( FLY ).
Overall quarterly profit stood at $4.1 billion, or $12.25
per share, compared with $2.99 billion, or $8.40 per share, a
year ago.
Goldman executives have been increasingly optimistic around
dealmaking in recent months, with Solomon saying in September it
had one of its busiest weeks for IPOs in more than four years.
SUSTAINED TRADING RESILIENCE
Wall Street trading desks have reaped rewards from record
volatility as clients rejig portfolios to keep pace with changes
in President Donald Trump's trade, foreign and fiscal policies.
The third quarter, however, remained one of Wall Street's
calmest quarters in nearly six years as a interest-rate cut from
the Federal Reserve and robust AI investment pushed major U.S.
stock indexes to record highs.
Still, Goldman's equities trading revenue rose 7% to $3.74
billion as investors took on more risk. Fixed income, currency
and commodities hauled in $3.47 billion, 17% higher than a year
ago.
(Reporting by Ateev Bhandari in Bengaluru and Saeed Azhar in
New York; Editing by Lananh Nguyen and Arun Koyyur)