Goldman Sachs easily beat analysts' estimates for earnings and revenue in the third quarter, bouncing back from a loss the same time a year ago.
The investment bank also said it would raise its dividend.
Net income for the three month period was $1.5 billion, or $2.85 a share. Analysts had been predicting $2.19 a share.
Revenue also beat estimates, breezing past the $7.2 billion forecast by analysts and more than doubling to $8.4 billion, from $3.6 billion a year ago.
The bank enjoyed big jumps in revenue from underwriting stock and bond offerings, a tentative sign that companies are more willing to take risks like going public or raising money.
The bank's investments in stock and bond securities came back from a loss a year ago and turned a profit, riding a wave of higher stock prices around the world. Trading in mortgages also propelled Goldman's results higher.
But there were still signs of gaps in Goldman's armour. The bank continued to trim jobs and expenses in the quarter. Goldman shed about 1,600 jobs, or 5% of its work force, compared with a year ago, and cut expenses like communications, occupancy and market development.
Trading in mortgage products increased the revenue the bank earned for helping clients execute trades, but other areas were weaker.
Revenue from helping investors execute stock trades fell because of "significantly lower" commissions, fees and market volume, the bank said. The bank also made slightly less revenue from advising clients on mergers and acquisitions, strategy, and similar matters.
Goldman also has a low bar for beating year-ago results. Last year it reported a rare quarterly loss, suffering as its clients pulled out of the market, scared off by the uncertainty caused by contentious budget negotiations in Congress and a downgrade of the US government's debt rating.
In a statement, Goldman's CEO sounded a cautious note about the quarter. Lloyd Blankfein called the quarter "generally solid in the context of a still challenging economic environment," adding that Goldman would "continue to be disciplined in managing our operations and capital."
Of its clients' appetite, the bank said, "broad market concerns persisted and levels of activity remained generally low."
The bank still managed to find more money to pay employees. Salary expenses jumped 10% even though the number of employees fell.
