Goldman Sachs-Q2 profit halved, but better than expected thanks to trading, Company News

Wall Street

Goldman Sachs-Earnings halved in Q2, but better expected thanks to trading | Photo credits: Ana Paula Hirama / Creative Commons

July 18 (Reuters) – Goldman Sachs on Monday reported a weaker-than-expected 48% drop in second-quarter profit, supported by buoyant fixed-rate trading activity amid sharp swings in prices. markets.

The bank’s trading revenue jumped 32% to $6.47 billion (€6.39 billion), with fixed rate and commodity brokerage revenue up 55% and trading revenue 11% share.

This allowed the group to offset the impact suffered by its investment banking activities, linked to a fall in underwriting activity and transactions, while a feeling of risk aversion took hold of the markets. global.

Its quarterly report echoes those of JPMorgan Chase & Co and Morgan Stanley, which also recorded a drop in their revenues in this activity. Investment banking revenue fell 41% to $2.14 billion in the quarter.

Goldman Sachs’ net income also fell 23% to $11.86 billion for the second quarter and profit nearly halved to $2.8 billion, or $7.73 per share.

Asset management also penalized the bank, with net income of $1.08 billion, down 79% from the second quarter of 2021.

The provision for credit losses was $667 million for the second quarter of 2022, compared to net profit of $92 million in the second quarter of 2021. (Reporting Niket Nishant and Noor Zainab Hussain in Bangalore and Saeed Azhar in New York; French version Augustin Turpin, edited by Kate Entringer)

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