Profits at Goldman Sachs in the third quarter dropped 43% to their lowest level in over three years as the firm took a $445m (€498m) hit on its investments in the technology and telecoms sectors.

Goldman's principal investments division marks it portfolio to market every quarter, and made a loss in the third quarter of $445m. The biggest single factor was the recent sharp fall in Deutsche Telekom, in which Goldman owned some 30 million shares. In the same period last year the principal investments business generated net revenues of $480m.