Goldman Sachs (GS) earned $3.19bn, or $5.25 per share, during Q309, up from profits of $1.81 per share in Q308 and $4.93 per share in Q209. Goldman said it repurchased the outstanding US Treasury warrant from its participation in the Troubled Asset Relief Program (TARP) for $1.1bn on July 22, resulting in a 23% return on investment to the federal money lent to Goldman. Revenue from fixed income, currency and commodities (FICC) was $5.99bn, “significantly” higher than Q308, but down from $6.8bn in Q209 and $6.5bn in Q109. Goldman said the improvement over 2008 reflected better performance in credit products and mortgages. Net revenues in investment banking were $899 million, down 31% from Q308 and 38% lower than the Q209. Net revenue in financial advisory was $325m, down 47% from Q308, reflecting a decline in industry-wide completed mergers and acquisitions. “Although the world continues to face serious economic challenges, we are seeing improving conditions and evidence of stabilization, even growth, across a number of sectors,” said Goldman Sachs chairman and CEO Lloyd Blankfein. “Our client franchise businesses — advisory, financing, market making and asset management — contribute to and benefit from the overall improvement in conditions. Because the job market, and growth more generally, remain under stress, we continue to be focused on actively helping our clients in order to promote greater economic activity,” he added. Write to Austin Kilgore.