Goldman Sachs Group today reported a better than expected quarterly profit and named bank insider David Solomon to replace long-time chief executive Lloyd Blankfein.
Solomon's appointment comes as Goldman Sachs tries to reinvent itself after market trends and regulations ate into profits from its once-lucrative trading business.
Blankfein will remain chairman until the end of the year, and Solomon, currently the bank's chief operating officer, will take the helm at the start of October.
Net income at the fifth largest US bank rose 44% in the second quarter ended June 30, helped by strength in its investment banking and bond trading businesses.
Goldman's performance in fixed income, commodities and currency trading contrasted with an exceptionally poor quarter a year ago, which saw the bank post the weakest commodities results in its history.
In equity trading, however, Goldman lagged peers such as JPMorgan Chase & Co and Citigroup, both of which reported a rise in revenue from the business.
In its second-quarter results, JPMorgan identified strength in equity derivatives, while Goldman said today that its derivatives revenue fell.
Overall trading revenue, the biggest contributor to Goldman's total revenue, rose 17% to $3.57 billion.
Total non-interest revenue rose 18.3% to $8.40 billion, with investment banking revenue rising 18%.
On a per share basis, the bank earned $5.98, comfortably topping the average estimate of $4.46 per share, according to Thomson Reuters data.
