NEW YORK (`) – Investment banking giant Goldman Sachs posted second-quarter profit that almost halved year-on-year as turmoil in financial markets and warnings of a possible recession caused the bank’s deal-making business to slump significantly slowed down.
The New York-based bank announced Monday that it posted earnings of $2.77 billion, or $7.73 per share, for the three months ended June, compared to earnings of $5.35 billion dollars, or $15.02 per share for the same period a year earlier. Goldman was the latest of the big banks to report large earnings declines compared to 2021.
Goldman’s earnings decline was almost entirely due to global economic uncertainty and slowing business activity at most banks. Investment banking revenues were down 41% year-over-year as fees for listing companies and assisting with new bond issuance nearly evaporated during the quarter.
The bank also wrote down the value of its own investment portfolio, reflecting the fall in stock and other asset prices last quarter, when the stock market had its worst quarterly performance since the Great Recession.
Goldman’s trading departments were able to offset some of the losses in the bank’s other departments. Trading revenues from Goldman’s fixed income, foreign exchange and commodities desks grew 32% year over year.
The company’s total revenue was $11.86 billion, compared to $15.39 billion a year ago.
Goldman shares are up 3% in morning trade.
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