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US banking giant Goldman Sachs has reported a sharp fall in profits as trading activity slowed owing to concerns about global economic growth.

Net profits for the three months to , down more than a third on a year earlier. Revenue fell almost 20% to $6.9bn.

The results contrasted sharply with those of rival Citigroup, in profits, to $4.29bn.

The bank said it was able to offset a fall in revenue by cutting costs.

Goldman's investment banking division saw revenues increase, but other divisions, particularly market making and bond trading, saw revenues drop.

"We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth," said the bank's chief executive, Lloyd Blankfein.

Earlier this week, other big US banks also reported a drop-off in trading during the quarter.

US stock markets fell sharply in August, sparked by fears of a slowdown in the Chinese economy.

Revenues at Citi fell by 5% to $18.69bn, but the bank was able to cut costs dramatically.

"Despite revenue headwinds, we once again proved our ability to manage our risk, our expenses and our capital," said chief executive Michael Corbat.