Goldman Sachs’s profit more than doubled in the second quarter, helped by rising fees on debt issuance transactions and strong performance in fixed income securities.
The U.S. bank earned a profit of $3.04 billion, or $8.62 a share, in the three months ended June 30, compared with $1.22 billion, or $3.08 a share, a year ago.
“We are pleased with our solid second quarter results and our overall performance in the first half of the year, reflecting strong year-over-year growth in both our Global Banking & Markets and Asset & Wealth Management businesses,” said Chief Executive Officer David Solomon, in a statement.
The bank’s second-quarter 2023 results were pressured by writedowns related to GreenSky, its former fintech business sold by Goldman.
Fees charged by Goldman’s investment banking business rose 21% to $1.73 billion in the quarter, helped by higher fees from debt and equity underwriting and mergers and acquisitions advisory.
Revenue from fixed income, currency and commodity (FICC) trading increased 17%. Revenue from equity trading increased 7%.
After a failed foray into retail banking, Goldman has returned to its traditional pillars: investment banking and asset trading.
Investors have backed the strategy overhaul. The Wall Street giant’s shares have risen 24.4% since the start of the year, compared with Morgan Stanley’s 11.6% gain and JPMorgan Chase’s 20.5% gain.
Goldman’s provisions for credit losses amounted to $282 million in the second quarter, up from $615 million a year earlier.
Goldman raised its dividend to $3 a share, up from $2.75 previously.
Source: Terra
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