Goldman Sachs reported higher quarterly profit on Wednesday, driven by the strength of its trading and investment banking businesses.
The firm posted a 93% surge in revenue in its global markets unit, which houses the trading business.
Revenue from fixed income, currency and commodities sales and trading was $4.23 billion, the highest quarterly revenue in nine years. Equities trading generated $2.94 billion, its best top-line number in 11 years.
The bank’s net earnings applicable to common shareholders rose 2% to $2.25 billion in the quarter ended June 30. Earnings per share rose to $6.26 from $5.81 a year earlier.
Analysts had expected a profit of $3.78 per share, on average, according to the IBES estimate from Refinitiv.
“Our strong financial performance across our client franchises demonstrates the inherent benefits of our diversified business model. The turbulence we have seen in recent months only reinforces our commitment to the strategy we outlined earlier this year to investors said,” said David M. Solomon, Chairman and Chief Executive Officer of Goldman.
Solomon added, “While the economic outlook remains uncertain, I am confident that we will continue to be the firm of choice for clients around the world who are looking to reshape their businesses and rebuild a more resilient economy.”
A conference call to discuss the firm’s financial results, outlook and related matters, will be held today, July 15, 2020, at 9:30 am ET. The call will be open to the public.
Source: Equities News