Bumper rewards for bank workers.

STAFF at investment bank Goldman Sachs have notched up an average 527,000 US dollars (pounds 325,000) in pay and bonuses so far this year after a sharp rise in profits, it was revealed yesterday.

The US banking giant said it had earmarked 16.7 billion US dollars (pounds 10.3 billion) for the first nine months of 2009 to cover compensation and benefits for its 31,700 staff globally - up 46% on a year ago.

News of its bumper rewards pool came as the bank reported another quarter of strong profits growth, with third-quarter net earnings up to 3.19 billion US dollars (pounds 1.96 billion) from 845 million dollars (pounds 519.8 million) a year ago.

Its better-than-expected earnings follow figures yesterday from fellow US bank JP Morgan Chase showing a surge in profits to 3.6 billion US dollars (pounds 2.3 billion) as banks return to health a year after the collapse of Lehman Brothers.

However, Citi yesterday gave a reminder that conditions are still tough in the sector as it reported a loss of 3.24 billion dollars (pounds 2 billion) and said it had taken another eight billion dollars (pounds 5 billion) in credit losses.