Goldman Sachs Profits Surge 45% Amid Banking Trends

Goldman Sachs reported a 45% surge in third-quarter profits, reaching $2.99 billion, driven by a strong performance in equity trading and investment banking, which exceeded analysts' expectations. The bank's revenues increased by 7% to $12.7 billion, bolstered by a 20% rise in investment banking fees to $1.87 billion. Despite a setback from its consumer banking ventures, including a $415 million pretax hit, Goldman shares rose, reflecting investor confidence in its refocused strategy. The results were part of a broader trend among major banks like Bank of America and Citigroup, which also showed resilience through growth in investment banking despite challenges in other segments. CEO David Solomon attributed the success to an improving operating environment and the bank's strategic pivot away from less profitable ventures. This growth comes amid a period of adjusting to lower interest rates, which analysts suggest could further benefit future earnings through increased merger and acquisition activity.