US investment banks enjoy third-quarter profit boost

Goldman Sachs has reported an 18% rise in third-quarter net income to 2.52bn US dollars (€1.94bn).

The investment banking titan posted revenue of 8.65bn US dollars (€7.47bn) in the period, up from 8.33bn US dollars (€7.2bn) a year ago, topping Wall Street forecasts.

However, the firm posted a 10% fall in sales from its fixed-income division, which Goldman put down to "significantly lower net revenues" in interest rate products and lower net revenues in credit products and mortgages.

Meanwhile, Morgan Stanley has seen third-quarter profit rise to 2.11bn US dollars (€1.82bn) from 1.78bn US dollars (€1.54bn) a year ago.

The US bank posted revenue of 12.56bn US dollars (€10.85bn) in the period, while the lender's revenue net of interest expense was 9.87bn US dollars (€8.53bn), up from 9.2bn US dollars (€7.9bn) a year ago and exceeding forecasts.

PA