Goldman Sachs profit beats expectation in second quarter

Goldman Sachs’ profit more than doubled in the second quarter and beat analysts’ estimates on strong debt underwriting and fixed-income trading, but slipped from a bumper first quarter when earnings were the highest since 2021.

The resilience of the US economy has given corporate executives the confidence to pursue acquisitions, debt sales and stock offerings.

“We are pleased with our solid second quarter results and our overall performance in the first half of the year, reflecting strong year-on-year growth in both Global Banking & Markets and Asset & Wealth Management,” CEO David Solomon said in a statement on Monday.

Earnings were $3.04 billion, or $8.62 per share, for the three months ended June 30, about 3 per cent higher than analysts’ average expectation of $8.34, according to LSEG. The beat was narrower than in the prior two quarters, when Goldman’s profit was 35 per cent and 56 per cent higher than estimates. Shares were last marginally up in volatile premarket trading.

Stephen Biggar, an analyst at Argus Research, attributed the stock performance to the narrow beat and investment banking underperforming peers such as JPMorgan Chase and Citigroup.

Goldman’s investment banking fees rose 21 per cent to $1.73 billion in the quarter. Fees earned from advising on mergers and acquisitions (M&As) jumped 7 per cent, while debt and stock underwriting climbed 39 per cent and 25 per cent, respectively.