Goldman Sachs has confounded analysts and forecasters alike by reporting a net profit of $3.44bn (£2.1bn) for April to June. The US bank, with pointed to the profit-boosting effect of less volatility in stock markets, rises in global share prices and involvement in many firms' rights issues and takeovers, said it had set aside $6.65bn for pay and bonuses in the quarter - an average of $226,000 per employee.

Goldman has recently paid off $10bn of government loans it had taken as part of a government bail-out programme. Its results include a one-off charge of $426m related to the repayment of its government loan under the Troubled Asset Relief Programme (Tarp).

Six months ago, Goldman reported its first quarterly loss since going public in 1999, after being battered by the economic crisis. But it then surprised Wall Street by reporting a $1.8bn profit for the first three months of the year, despite the financial crisis. And the bank said it had benefitted from higher volumes of trading in shares, while seeing record revenues from currency and commodities trading during the second quarter. "While markets remain fragile and we recognise the challenges the broader economy faces, our second quarter results reflected the combination of improving financial market conditions and a deep and diverse client franchise," said chief executive Lloyd Blankfein.