Home >Companies >Company Results >Goldman Sachs’ profit, revenue jump

Goldman Sachs Group Inc.’s profit shot higher in the second quarter, as accelerating economic growth and market gains lifted many of the Wall Street firm’s business lines.

Goldman reported quarterly profit of $5.49 billion, or $15.02 a share, on revenue of $15.39 billion. Both measures were up significantly from a year ago and better than the expectations of analysts polled by FactSet, who forecast profit of $10.25 a share.

This spring’s rapid U.S. economic recovery, helped by the rollout of Covid-19 vaccines and extensive business reopening and hiring, energized banks’ deal makers. Corporate chieftains and buyout firms put hundreds of billions of dollars to work in big-ticket acquisitions. Investors gobbled up billions of dollars of stock sold by startups in marquee initial public offerings and private fundraising rounds. Goldman’s investment bankers brought in $3.61 billion in fees in the second quarter, up 36% from last year’s second quarter.

Meanwhile, the decline in volatility from last spring’s market swoons damped activity on Goldman’s trading desk. Revenue from trading totaled $4.9 billion, down 32% from a year ago, when markets were more erratic. Still, the results were historically strong.

Goldman’s overall bottom line expanded at an especially brisk pace because of a one-time legal charge it booked a year ago. A settlement Goldman reached last summer with the government of Malaysia over its dealings with a corrupt investment fund there subtracted $2 billion from its earnings in the second quarter of 2020, making this quarter’s earnings loom large in comparison.

Shares in Goldman are up 44% since the start of 2021 and hit a record high of $391.45 in June. Last month, Goldman raised the dividend it paid shareholders to $2 from $1.25.

This story has been published from a wire agency feed without modifications to the text

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