July 18 (Reuters) – Goldman Sachs GS.N reported a weaker-than-expected second-quarter profit decline of 48% on Monday, supported by buoyant fixed-rate trading activity, amid strong market fluctuations.
The bank’s trading revenue jumped 32% to $6.47 billion (€6.39 billion), with fixed rate and commodity brokerage revenue up 55% and trading revenue 11% share.
This allowed the group to offset the impact suffered by its investment banking activities, linked to a fall in underwriting activity and transactions, while a feeling of risk aversion took hold of the markets. global.
Its quarterly report echoes those of JPMorgan Chase & Co JPM.N and Morgan Stanley MS.N, which also recorded a drop in their income in this activity. Investment banking revenue fell 41% to $2.14 billion in the quarter.
Goldman Sachs’ net income also fell 23% to $11.86 billion for the second quarter and profit nearly halved to $2.8 billion, or $7.73 per share.
Asset management also penalized the bank, with net income of $1.08 billion, down 79% from the second quarter of 2021.
Provision for credit losses was $667 million for the second quarter of 2022, compared to net income of $92 million in the second quarter of 2021.
(Reporting Niket Nishant and Noor Zainab Hussain in Bangalore and Saeed Azhar in New York; French version Augustin Turpin, editing by Kate Entringer)