Goldman Sachs quarterly profit jumps 78%
Goldman Sachs reported second quarter revenue of $7.93bn and net profits of $1.8bn
Goldman Sachs reported second quarter revenue of $7.93bn and net profits of $1.8bn, a 74% jump from the same quarter in 2015. Photograph: Reuters
Goldman Sachs quarterly profit jumped 78 per cent, handily beating market expectations, as the Wall Street bank earned more from bond trading and its expenses fell.
Revenue from trading fixed income, commodities and currencies (FICC) rose 20 per cent to $1.93 billion in the second quarter.
Total revenue from trading rose 2 per cent to $3.68 billion.
Goldman’s total operating expenses fell 25.5 per cent to $5.47 billion.
The bank, like other Wall Street firms, has been focusing on cutting costs as concerns about slowing growth in China and other major markets discourage dealmaking and trading.
“Despite the uncertainty created by Brexit, we achieved solid results,” Chief Executive said Lloyd Blankfein said in a statement.
Investment banking revenue, which includes income from advising on deals and underwriting bond and stock offerings, fell 11 per cent to $1.79 billion.
Global investment banking fees for the industry fell by nearly a quarter in the first half of 2016 as volatility hit capital markets and dealmaking, according to Reuters data.
Net income applicable to Goldman’s common shareholders rose to $1.63 billion, or $3.72 per share, in the quarter ended June 30th from $916 million, or $1.98 per share, a year earlier, when Goldman set aside $1.45 billion for regulatory and mortgage-related legal settlements.
Goldman’s arch rival, Morgan Stanley, reports quarterly results on Wednesday.
Goldman shares were up slightly at $163.70 in pre-market trading on Tuesday. Up to Monday’s close, the stock had fallen more than nine per cent this year.