Goldman Sachs profits tumble despite strong trading results

Goldman Sachs profits tumble despite strong trading results

Goldman Sachs Chief Executive David Solomon praised the investment bank's performance, which was challenged by "increased volatility and uncertainty" in the macroeconomic environment
Goldman Sachs Chief Executive David Solomon praised the investment bank's performance, which was challenged by "increased volatility and uncertainty" in the macroeconomic environment. Photo: Patrick T. FALLON / AFP/File
Source: AFP

New feature: Check out news exactly for YOU ➡️ find “Recommended for you” block and enjoy!

Goldman Sachs reported a 48 percent drop in quarterly earnings Monday after setting aside more funds in case of bad loans, but shares rose as it topped analyst estimates.

The US investment bank became the latest financial heavyweight to suffer a decline in second-quarter results as the weakening macroeconomic environment prompts them to hold funds in case of defaults.

Operations were mixed, but Goldman scored a big jump in revenues tied to trading amid volatile markets.

Profits were $2.8 billion for the second quarter following an eight percent slide in revenues to $11.9 billion.

Goldman established $667 million in provisions, a shift from the year-ago period when earnings were boosted by $92 million in reserve releases.

Goldman Chief Executive David Solomon referred in a press release to "increased volatility and uncertainty" in the environment, praising the bank's performance "in these challenging markets."

Read also

Sri Lanka renews state of emergency ahead of key vote

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

Other bank executives last week alluded to similar worries amid rising inflation, the war in Ukraine and other factors, but said the US economy still appeared to be on solid footing for now.

In terms of operations, Goldman suffered a drop in revenues connected to mergers and acquisition advising and loan underwriting.

The bank's own investments in equities reported a $221 million loss in the period. But Goldman scored an increase in its consumer banking.

Shares rose 3.8 percent to $305.05 in pre-market trading.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.