Goldman Sachs beat Wall Street’s third-quarter expectations today, announcing a 47% increase in earnings after its worst first half in CEO Lloyd Blankfein’s decade-long tenure. Fixed-income and bond trading helped lead the resurgence, with trading revenue overall up 17%.
The firm’s return on equity, which had fallen to 7% at this time last year, jumped to 11.2%, a positive sign for a key profitability metric.
Goldman is in the midst of a time of transition, as it looks to trim costs, manage risk in line with regulator demands, and exploit technology as a source of growth. Last week the firm launched an online lending product called Marcus, a retail banking product that it built from scratch.