NEW YORK, United States — Goldman Sachs Group Inc’s earnings easily beat analysts’ forecasts again, but the bank saw a big slowdown in trading, its most profitable business.

Net income after paying preferred dividends fell 43 per cent from the year-ago period as revenue in the bank’s bond, currency and commodities trading division fell sharply.

During a conference call with investors, Goldman’s chief financial officer David Viniar said customers worried about the broader economy cut back on trading during the quarter, which exacerbated a typical summer slowdown.

Goldman Sachs’ income fell to US$1.74 billion, or US$2.98 per share, the bank said yesterday. It earned US$3.03 billion, or US$5.25 per share, during the same three-month period last year. Analysts polled by Thomson Reuters predicted earnings of US$2.32 per share.

Revenue fell 28 per cent to US$8.9 billion, but still came in well ahead of the US$7.92 billion analysts had forecast. Goldman’s shares jumped US$4.29, or 2.8 per cent, to US$157.99 in morning trading, despite a broad decline in the stock market.

Analysts have been expecting Goldman’s earnings to decline because of slower trading, and have been slashing their estimates in recent weeks. A month ago, analysts’ average forecast was for income of US$3.05 per share.

Goldman’s trading volume fell in the third quarter amid historically low interest rates and waning market volatility. Those low rates benefited Goldman’s investment banking division, however, which reported a 24 per cent jump in revenue. With borrowing rates so low, many companies were eager to issue new debt.

The decline in Goldman’s overall revenue was also tied to a slowdown in stock trading and a weaker return on its investment in Industrial and Commercial Bank of China Ltd. Goldman’s stake in the Chinese bank generated just US$9 million in revenue during the quarter, down from US$344 million during the same quarter last year.

The New York-based bank continued to reduce compensation costs. The bank was strongly criticized during the financial crisis for doling out big paychecks even after it received government aid and while the broader economy suffered.

Goldman set aside US$3.83 billion for compensation and benefits during the quarter. It has now set aside US$13.12 billion for compensation during the first nine months of the year, a 21 per cent drop from the same period last year.

Compensation totaled 43 per cent of the company’s revenue for the year so far, down from 47 per cent last year.