Bear Stearns' tight grip on costs and strong equity trading revenues to help the bank record a rise in third-quarter profits, in spite of the slowdown in bond underwriting.

The US bank made a profit of $164m (€167m) in the quarter ending August 31, a rise of 22% on the same period last year. Total revenues fell, but costs fell further as Bear cut its wage costs and cut its information technology bill by 20%.