U.S. investment bank Goldman Sachs (GS) has reported second-quarter financial results that beat Wall Street estimates across the board.
The New York-based firm has announced earnings per share (EPS) of $8.62 U.S. compared to $8.34 U.S. that was forecast among analysts. The profit was up 150% from a year earlier.
Revenue in the April through June quarter totaled $12.73 billion U.S. versus $12.46 billion U.S. that had been expected. Sales gained 17% from the year ago period.
Management said the better-than-expected results were due to a rebound in fixed income trading, as well as strong results in its deal advisory and wealth management operations.
Goldman’s fixed income trading rose 17% year-over-year to $3.18 billion U.S., which was $220 million U.S. more than analysts had penciled in for the bank.
Other highlights include equity trading, which gained 7% to $3.17 billion U.S., matching estimates, and wealth management, which saw a 27% increase in revenue to $3.88 billion U.S.
The latest results mark a turnaround for Goldman Sachs after a dismal 2022 and 2023 when there was a bear market in stocks and deals had dried up on Wall Street.
Among the largest U.S. banks, Goldman Sachs is viewed as being the most reliant on investment banking fees for mergers and acquisitions (M&A) and initial public offerings (IPOs).
Goldman’s Q2 print comes days after JPMorgan Chase (JPM) and Citigroup (C) also beat Wall Street forecasts for their earnings due to surging investment banking fees and stock trading.
Shares of Goldman Sachs have risen 47% over the last 12 months to trade at $479.88 U.S. each.
