DOZENS of bankers at Goldman Sachs in London could be in line for million-pound bonus payouts following another bumper quarter of profits at the giant investment bank.

Goldman is expected to reveal second-quarter profits of $2 billion (£1.2 billion) on Tuesday, after raking in fees from share and bond issues around the world.

The bank leads an elite group of large financial institutions making huge profits from the disruption in the markets. They are all expected to make large bonus payments to some staff this year.

The payouts come in spite of the enormous losses racked up by the banking sector, which have led to taxpayers around the world stumping up huge sums of money to keep the financial system alive.

Goldman is one of a clutch of American banks to have repaid money to the US government, freeing itself from some of the threatened restrictions on banker pay.

Analysts believe the bank’s bonus pool could double to about £12 billion by the end of the year if the trading performance continues. If that were to happen, Goldman would pay out an average of £430,000 a head to its 5,500 London staff.

Sources close to Goldman said that most employees would not receive a pay deal on this scale, but that many high-flying bankers could be in line for big bonuses due to strong performance in many areas of the business.

Lloyd Blankfein, the chief executive of Goldman, presented a charter to the bank’s annual meeting in May outlining its policies on remuneration. The charter promised to spread any future bonus payments over a number of years, and subject them to a potential clawback if future performance targets are not met.

None of the bonuses would be paid out until the end of the financial year, although the bank sets aside a sum in each set of quarterly results to account for the payments.

Last year’s expected bonus payments at the bank plunged late in the year after big losses racked up during the fourth quarter. Goldman will be the first of the big Wall Street banks to report second-quarter results. Morgan Stanley, Deutsche Bank and Barclays are all expected to show strong profits from their trading operations, particularly in interest rates, currencies and commodities.

JP Morgan, another of the big winners from the credit crunch, will also post second-quarter figures this week that are expected to reveal huge profits from its investment banking operations. However, spiralling losses from its credit-card business are expected to see its bottom-line profits slump.

Bank of America Merrill Lynch is also expected to report a drop in profits, as impairment charges from consumer and commercial lending hold back profits from its investment banking and trading businesses.

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