Goldman Sachs reports dip in Q2 profits

A Goldman Sachs sign is displayed inside the company’s post on the floor of the New York Stock Exchange in New York April 18, 2017. — Reuters pic
A Goldman Sachs sign is displayed inside the company’s post on the floor of the New York Stock Exchange in New York April 18, 2017. — Reuters pic

NEW YORK, July 16 — Goldman Sachs reported a dip in second-quarter profits today due to declines in trading and debt underwriting, although the results topped analyst expectations.

Net income was US$2.2 billion (RM9.03 billion), down 6.4 per cent from the year-ago period.

Revenues dropped 1.8 per cent to US$9.5 billion.

Goldman suffered from a decline in fixed income, currency and community trading, a weakness at other large banks.

Financial advisory revenues also fell due to lower merger and acquisition activity compared with the year-ago period. Debt underwriting revenues also fell.

On the upside, Goldman notched higher revenues in its investing and lending division due to gains in public equities.

The results are among the first from large banks against a backdrop of uncertainty over international trade and an anticipated loosening of monetary policy, with the Federal Reserve expected to cut interest rates later this month.

“We’re encouraged by the results for the first half of the year as we continue to invest in new businesses and growth to serve a broader array of clients,” said chief executive David Solomon in a statement.

“Given the strength of our client franchise, we are well positioned to benefit from a growing global economy.”

Goldman shares rose 0.9 per cent to US$213.56. — AFP