The markets’ wild gyrations and record breaking volumes proved good for Goldman Sachs. The investment bank’s quarterly trading revenue doubled, and that helped its profit crush Wall Street’s estimates.
Revenue at the unit that houses Goldman’s vaunted trading business - global markets - leapt 93%. On Tuesday, JPMorgan Chase and Citigroup also reported surging trading revenue.
Goldman also got a lift from a 36% increase in investment banking revenue. Strength in underwriting partially offset a loss in corporate lending and weakness in its advisory business.
Goldman’s overall revenue jumped 41% - its second highest quarter on record.
But amid the economic uncertainty, Goldman - like other banks - significantly boosted its provision for loan losses.
Its shares, which have dropped nearly 7% this year, rose in early trading Wednesday.