Goldman Sachs exceeded expectations in its second-quarter results announced on Wednesday, driven strongly by its trading operations.
The bank reported earnings per share of $10.91, well above the $9.53 forecast, with total revenue rising to $14.58 billion, beating estimates of $13.47 billion. Net profit grew 22% year-on-year to $3.72 billion.
Equities trading was a major contributor, generating $4.3 billion in revenue—a 36% increase compared to last year and $650 million above analyst predictions. Goldman’s role as both a market maker and lender to institutional investors helped boost this segment.
Fixed income trading revenues increased 9% to $3.47 billion, outperforming expectations by $190 million, supported by active currency and credit markets.
Investment banking fees climbed 26% to $2.19 billion, exceeding forecasts by $290 million, benefiting from a rebound in asset values after April’s lows. However, asset and wealth management revenues declined 3% to $3.78 billion, falling short of estimates by $100 million due to weaker returns on private equity and debt investments. Meanwhile, the platform solutions division posted a modest 2% revenue increase to $685 million.
Goldman Sachs shares had risen 23% this year before the announcement, reflecting investor confidence. The bank’s strong results show a trend among U.S. lenders, with JPMorgan, Citigroup, Wells Fargo, and Morgan Stanley also beating expectations, while Bank of America lagged on revenue.
“Currently, the economy and markets are largely responding favourably to the changing policy landscape. However, since developments seldom progress in a linear fashion, we remain highly attentive to risk management,” said Goldman’s CEO David Solomon.