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Goldman Sachs Takes Advantage of Global Trading Frenzy for Extraordinary Profits

Oct 15 (Reuters) – Goldman Sachs Group Inc. reported a 66% rise in third-quarter earnings on Friday, which beat expectations as Wall Street’s largest investment bank benefited from a record wave of mergers and acquisitions that has also fueled other large lenders.

Net earnings applicable to ordinary shareholders increased to $ 5.28 billion in the quarter ended September 30, compared to $ 3.23 billion a year ago.

Earnings per share increased to $ 14.93, from $ 8.98 a year earlier. On average, analysts expected a profit of $ 10.11 per share, according to Refinitiv’s IBES estimate.

Goldman, which generates most of its revenue by charging lucrative advisory fees at the world’s largest operations, saw those fees rise as large companies embarked on a series of transformative operations this year.

Total revenue increased 26% to $ 13.61 billion. Investment banking revenue nearly doubled to $ 3.55 billion.

The global volume of mergers and acquisitions has broken all-time records. The pace of trading has exceeded all expectations, and advisers are struggling to cope with never-before-seen transaction volumes.

The world’s largest investment banks signed deals worth more than $ 1.5 trillion in the September quarter, according to Refinitiv data.

Goldman comfortably clung to its top spot on the global M&A advisory leaderboards, according to Refinitiv. These tables rank financial services companies based on the amount of M&A fees they generate.

(Reporting by Noor Zainab Hussain and Anirban Sen in Bengaluru, Elizabeth Dilts and Matt Scuffham in New York; edited in Spanish by Gabriela Donoso)

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