Goldman Sachs posted a massive 150% jump in second-quarter profit, helped by a broad recovery in trading and underwriting that revived the investment bank after a slowdown of the previous two years.
NEW YORK — Goldman Sachs reported a massive 150% jump in second-quarter profit on Monday, helped by a resurgence in trading and underwriting that revived the investment bank after a slowdown of the previous two years.
The New York investment bank reported net revenue of $3.04 billion, or $8.62 per share, compared with $1.22 billion in the same period a year earlier. for the three months ended June 30, compared with $1.22 billion, or $3.08 per share, a year earlier.
Part of the profit increase was due to Goldman Sachs recording one-off items last year as it booked charges for the winding down of its retail banking business.
That said, nearly every aspect of Goldman’s business saw revenue increase in the quarter, reflecting what has been a broad recovery in trading and activity on Wall Street this year amid a healthy economy.
Investment banking fees rose 21%, driven by a sharp increase in the bank’s debt underwriting fees. Many companies are having to refinance their debt to cope with rising interest rates, and there is an increase in leveraged financing arrangements.
Goldman’s fixed income, currencies and commodities trading division saw revenue rise 17% from a year earlier. Equity trading was less buoyant than other segments of the market, with Goldman saying net revenue in the division rose 7%.
Finally, the bank’s asset management division posted a 27% rise in revenue, helped by a rise in fee income and the value of Goldman’s own investments.
The bank’s shares rose slightly before the open.
