Goldman Sachs-Q2 profit halved, but better than expected thanks to trading, Company News

Wall Street

Goldman Sachs-Earnings Halved in Q2, But Better Expected Thanks to Trading | Photo credits: Ana Paula Hirama / Creative Commons

July 18 (Reuters) – Goldman Sachs reported a weaker-than-expected 48% decline in second-quarter earnings on Monday, supported by buoyant fixed-rate trading activity amid sharp price swings.

The bank’s trading revenue increased 32% to $ 6.47 billion (€ 6.39 billion), with fixed-rate and commodity brokerage revenue up 55% and trading revenue share of 11% .

This allowed the group to offset the impact suffered by investment banking, linked to the decline in insurance business and transactions, while a sentiment of risk aversion took hold of global markets.

Its quarterly report echoes those of JPMorgan Chase & Co and Morgan Stanley, which also saw a decline in their revenues in this business. Investment banking revenues fell 41% to $ 2.14 billion in the quarter.

Goldman Sachs’ net income also fell 23% to $ 11.86 billion in the second quarter and earnings nearly halved to $ 2.8 billion, or $ 7.73 per share.

Wealth management also penalized the bank, with a net profit of $ 1.08 billion, down 79% from the second quarter of 2021.

The credit loss provision was $ 667 million for the second quarter of 2022, compared to net profit of $ 92 million in the second quarter of 2021. (Reporting Niket Nishant and Noor Zainab Hussain in Bangalore and Saeed Azhar in New York; French version Augustin Turpin, edited by Kate Enteringer)

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