Goldman Sachs traders deliver surprise surge in firm’s best year ever

Goldman Sachs Group Inc. posted a surprise jump in its trading business, rounding out a stellar quarter for Wall Street’s biggest banks.

Goldman Sachs Group Inc. posted a surprise jump in its trading business, rounding out a stellar quarter for Wall Street’s biggest banks. 

The firm’s trading operation posted a 23 per cent increase in revenue, defying analysts’ expectations that the business would struggle to keep up with last year’s pace and slide 9%. Results from fixed-income trading easily surpassed estimates.

“This quarter’s results demonstrated the diversity of contribution from across all four segments,” Chief Financial Officer Stephen Scherr said. “And it just shows the strength embedded within the business.”

The COVID-19 pandemic has given a massive boost to banks’ trading and dealmaking operations. As economies recover and grow again, those businesses continue to deliver for U.S. finance giants. Goldman has already posted enough revenue through September -- US$46.7 billion -- to give the firm its best year ever.

Last month, Goldman announced Scherr will leave the firm and hand over the reins to Denis Coleman III, who previously helped lead the financing group at the bank. Beth Hammack, who was the treasurer, will take over Coleman’s old role.

“It’s enormously gratifying to be leaving the firm at a point when it’s performing at an exceptional level,” Scherr said.