Goldman Sachs reported third-quarter earnings of $4.57 a share on revenue of $8.39 billion, handily beating analysts' expectations.
Shares hovered near the flatline in premarket trade Thursday before falling more than 2 percent.
The investment bank said net profit rose 50 percent as last month's sudden pickup in bond market activity boosted trading revenue.
"The combination of improving economic conditions in the U.S. and a strong global franchise continued to drive client activity across our diverse set of businesses," Chairman and CEO Lloyd C. Blankfein said in a release. "While conditions and sentiment can shift quickly, the strength of our transaction backlog indicates our clients' desire to pursue and execute their strategic plans for growth."
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Net income attributable to common shareholders rose to $2.14 billion, or $4.57 per share, in the three months ended Sept. 30 from $1.43 billion, or $2.88 per share, a year earlier. The firm also increased the quarterly dividend to 60 cents per common share.
Analysts on average had expected earnings of $3.21 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear whether the
reported figure was comparable.
Revenue from bond trading, a notoriously volatile business, increased 74 percent to $2.17 billion as strong U.S. economic data, stimulus measures by the European Central Bank and the surprise exit of trading superstar Bill Gross from giant bond-trading firm Pimco jolted what had been a listless market.
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But Goldman's fixed income, currency and commodities (FICC) business has been on a declining trend since 2009 as new rules discourage banks from trading on their own book, and many in the industry wonder whether the business will ever truly rebound.
The FICC business contributed about 26 percent of overall revenue in the latest quarter, compared with about 40 percent of annual revenue in 2009 and 25 percent last year.
The bank, also one of the biggest beneficiaries of the resurgence in equity capital markets this year, said revenue from equity underwriting rose 54 percent to $426 million.
Shares hovered near the flatline in premarket trade Thursday before falling more than 2 percent.
The investment bank said net profit rose 50 percent as last month's sudden pickup in bond market activity boosted trading revenue.
"The combination of improving economic conditions in the U.S. and a strong global franchise continued to drive client activity across our diverse set of businesses," Chairman and CEO Lloyd C. Blankfein said in a release. "While conditions and sentiment can shift quickly, the strength of our transaction backlog indicates our clients' desire to pursue and execute their strategic plans for growth."
Read MoreWill consumers come to economy's rescue?
Net income attributable to common shareholders rose to $2.14 billion, or $4.57 per share, in the three months ended Sept. 30 from $1.43 billion, or $2.88 per share, a year earlier. The firm also increased the quarterly dividend to 60 cents per common share.
Analysts on average had expected earnings of $3.21 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear whether the
reported figure was comparable.
Revenue from bond trading, a notoriously volatile business, increased 74 percent to $2.17 billion as strong U.S. economic data, stimulus measures by the European Central Bank and the surprise exit of trading superstar Bill Gross from giant bond-trading firm Pimco jolted what had been a listless market.
Read MoreAbnormal bond market move signals bear capitulating
But Goldman's fixed income, currency and commodities (FICC) business has been on a declining trend since 2009 as new rules discourage banks from trading on their own book, and many in the industry wonder whether the business will ever truly rebound.
The FICC business contributed about 26 percent of overall revenue in the latest quarter, compared with about 40 percent of annual revenue in 2009 and 25 percent last year.
The bank, also one of the biggest beneficiaries of the resurgence in equity capital markets this year, said revenue from equity underwriting rose 54 percent to $426 million.
Goldman ranked No. 1 for both equity underwriting and
advisory services in the first nine months of 2014, according to Thomson
Reuters data, helped by its work on big deals including the $25 billion
IPO of Alibaba.
Goldman is the latest bank to report earnings this week. So far, it's been a mixed bag with JPMorgan Chase missing earnings estimates, Wells Fargo reporting in line and Citigroup topping earnings estimates.
Financials were the hardest-hit sector on the S&P 500 during Wednesday's market selloff.
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During the quarter, Goldman announced it would pay $3.15 billion to repurchase residential mortgage-backed securities bought by Fannie Mae and Freddie Mac from 2005 to 2007.
—Reuters contributed to this report.
Goldman is the latest bank to report earnings this week. So far, it's been a mixed bag with JPMorgan Chase missing earnings estimates, Wells Fargo reporting in line and Citigroup topping earnings estimates.
Financials were the hardest-hit sector on the S&P 500 during Wednesday's market selloff.
Read MoreCiti consumer banking head plans to leave: Report
During the quarter, Goldman announced it would pay $3.15 billion to repurchase residential mortgage-backed securities bought by Fannie Mae and Freddie Mac from 2005 to 2007.
—Reuters contributed to this report.
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