Goldman profits fall, but beat forecasts

Wall Street investment bank Goldman Sachs has suffered a 30 per cent drop in trading revenues in the third quarter of this year, with a sharp slowdown in world markets being blamed.

However, stronger performance in the investment banking sector appeared to offset these problems, with overall revenue up two per cent to $7.46 billion, with $1.29 billion coming from investment banking – significantly beating analysts' estimates.

Net profits also surprised analysts at $1.59 billion in total, although this was down by 1.4 per cent on last year's figures.

However, there are concerns that, like many other giants of the investment banking world, Goldman Sachs are in for more difficult months ahead, after enjoying months of favorable investment conditions.

A slowing of the mergers and acquisitions market has also been predicted by some – another factor likely to affect the bank's performance, with much of its business in mergers advising.

Goldman representatives, however, have claimed to be unconcerned, saying that there is a backlog of deals and no sign of a slowdown

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