Goldman Sachs 2Q profit declines 6%, but beats estimates

Business

FILE – In this Dec. 13, 2016, file photo, the logo for Goldman Sachs appears above a trading post on the floor of the New York Stock Exchange. The Goldman Sachs Group Inc. reports financial results on Tuesday, July 16, 2019. (AP Photo/Richard Drew, File)

NEW YORK (AP) — Goldman Sachs said its second quarter profit fell 6% from a year earlier, as the Wall Street firm saw declines across most of its businesses.

However the results were much better than what analysts’ had forecast, pushing shares higher in premarket trading.

The New York-based bank said it earned a profit of $2.42 billion, or $5.81 per share, down from $2.57 billion, or $5.98 per share, in the same period a year earlier. Analysts had expected Goldman to earn $4.73 per share.

Goldman’s results reflected the fact that many businesses, worried about the current U.S.-China trade war and other economic uncertainties, sat out the second quarter. Investment banking revenues were down 9% from a year ago, reflecting lower advisory fee revenues and bank underwriting fees.

The bank’s trading desks also saw slower activity. Revenue at Goldman’s Institutional Client Services division, which contains the firm’s trading operations, was down 3% from a year earlier. Bond, currency and commodity trading revenues fell 13%, while stock trading revenues rose 6%, reflecting the strong performance of the stock market in the second quarter.

The investment bank had revenue of $14.15 billion in the quarter, which was above what analysts forecast.

Goldman shares rose 1.2% in premarket trading.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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