Goldman Sachs profit rises 23% to $11.86 billion, beating expectations

On Monday, July 18, Goldman Sachs reported earnings and revenue that beat analyst estimates, with fixed-income traders earning nearly $700 million more than expected.

Second-quarter earnings fell 48 percent to $2.79 billion, or $7.73 per share, driven by lower industry-wide banking revenue. However, the results were more than a dollar higher than the average analyst estimate reported by Refinitiv.

Revenue fell 23% to $11.86 billion, a $1 billion increase from analyst expectations, driven by a 55% rise in fixed income revenue.

The bank’s fixed income operations generated $3.61 billion in revenue, exceeding StreetAccount’s estimate of $2.89 billion, as a result of “significantly higher” trading activity in interest rates, commodities and currencies.

Goldman shares rose 4.1% in pre-market trading.

Competitors, including JPMorgan Chase and Morgan Stanley, posted a sharp decline in advisory revenue in the second quarter. But another Wall Street competitor, Citigroup, saw a 25% jump in trading revenue that helped it beat earnings expectations.