Goldman earnings rise despite weak trading performance

Tuesday 15 July 2014 14.05
Earnings at Goldman Sachs rose to $1.95 billion in Q2.
Earnings at Goldman Sachs rose to $1.95 billion in Q2.

Goldman Sachs reported a slight bump in second-quarter earnings as strong results in underwriting and its own investments offset a hit from lower trading fees for clients.

Earnings at the large US investment bank rose 4.7% to $1.95 billion compared with the same period last year.

Goldman Sachs pointed to big jumps in both equity and debt underwriting, citing elevated industry-wide activity in both categories. 

The company also scored higher financial advisory fees, benefiting from a stream of mergers and acquisitions involving corporate clients.

Goldman Sachs notched strong gains in investing and lending, which manages Goldman's own investments in stocks, loans, infrastructure, real estate and other domains. Revenues in this category jumped 46% to $2.1 billion.

However, Goldman suffered from the same pull back in equity and bond trading that has marred results throughout the banking industry. Revenues in this category dropped 11.2% from a year ago.

"We are pleased with our results for the quarter in the context of mixed operating conditions during the period," said Goldman chief executive Lloyd Blankfein.

"This performance was driven by the diversity, strength and breadth of our global client franchise," Mr Blankfein added.

Goldman's earnings translated into $4.10 per share, much above the $3.05 projected by analysts. Revenues rose six percent to $9.13 billion, above the $7.97 billion projected by analysts.

Goldman shares rose 1.9% to $170.15 in pre-market trade.

Keywords: goldman sachs