LAST UPDATE 15:14
Goldman Sachs Group reported a drop in second-quarter profit as deals fell, weakening the Wall Street giant’s investment banking business.
The bank reported earnings of $2.8 billion, or $7.73 per share, for the quarter ended June 30, down from $5.3 billion, or $15.02 per share, a year ago, a decline 48%, lower than expected.
The stock is up 3.3% in pre-conference trading.
Investment banking was hit by a collapse in underwriting activity, which has stagnated due to the risk aversion that has swept markets worldwide.
However, faced with uncertainty from an aggressive central bank trying to reduce inflation and the war in Ukraine, clients sought to rebalance their portfolios, boosting trading activity.
Net income was 23% lower than last year, at $11.86 billion.
Revenue in the global markets unit rose 32% to $6.47 billion, with fixed income, commodity and trading revenue up 55% and equity revenue up 11%.
That helped the bank offset the blow to its investment banking business, where revenue fell 41 percent to $2.14 billion.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
