Goldman Sachs expecting a record full-year profit

Goldman Sachs is expecting to make a record full-year profit having earned billions over the past week amid a dealmaking frenzy.

The US investment bank divulged Q3 earnings per share of $14.93 on total income of $5.4bn.

Goldman’s growth came largely thanks to its investment banking arm which brought in $3.7bn, while its overall revenue was $13.6bn, $2bn above analysts’ consensus.

Banks across Wall Street will be popping champagne this weekend amid a rush to close corporate mergers, IPOs and private equity takeovers.

JP Morgan’s earnings from investment banking grew by 52%, while Morgan Stanley saw a 67% increase.

For the first nine months of 2021, Goldman Sachs confirmed revenue of $46.7bn and net income of $17.7bn. This is higher than any full-year period in the bank’s history.

The Goldman Sachs share price is up by 2.89% to $402.5 on Friday afternoon. Year-to-date the New York bank has added 51.89% to its share price.

“No one is expecting the environment to continue,” said Chris Kotowski of Opeenheimer, commenting on the bank’s remarkable results.

“That said, with the Fed printing $120bn of new money each and every month, every CEO in the world has lots of Monopoly money to play with. So M&A and investment spending and capital raising will likely remain strong,” Kotowski added.

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