Disappointing results for Goldman Sachs in the second quarter of 2023

The American bank, Goldman Sachs, recorded earnings per share below expectations in the second quarter of 2023, at $ 3.08 per share, compared to expectations of $ 3.18 per share.

The bank recorded revenues of $10.9 billion in the second quarter, compared to expectations of $10.84 billion.

The bank is facing a difficult environment for its most important business, with the continued stagnation in investment banking and commercial activity.

Unlike more diversified competitors, Goldman gets the majority of its revenue from its volatile Wall Street activities, including commercial and investment banking, and that can generate huge returns during boom times and underperformance when markets are not cooperating.

Goldman Sachs said trading revenue was set to decline by 25% in the quarter, and investment banking was weak due to weak public offerings and initial public offerings (IPOs) amid rate hikes from the US Federal Reserve.