Amidst robust debt underwriting and fixed-income trading, Goldman Sachs’ profit more than doubled in the second quarter and exceeded analysts’ projections. However, the company’s first-quarter earnings, which were at their highest since 2021, declined. Corporate executives now feel more confident to explore stock offers, debt sales, and acquisitions because of the durability of the US economy.
“We are pleased with our solid second quarter results and our overall performance in the first half of the year, reflecting strong year-on-year growth in both Global Banking & Markets and Asset & Wealth Management,” CEO David Solomon said in a statement on Monday.
According to LSEG, earnings for the three months ended June 30 were $3.04 billion, or $8.62 per share, or 3% more than analysts’ average estimate of $8.34.
Compared to the last two quarters, when Goldman’s profit exceeded projections by 35% and 56%, the beat was less pronounced.
The most recent tumultuous premarket trade saw a little increase in shares. Argus Research analyst Stephen Biggar blamed the stock’s gain on the narrow beat and the underperformance of investment banking competitors like Citigroup and JPMorgan Chase.
During the quarter, Goldman’s investment banking fees increased by 21% to $1.73 billion. Fees for M&A advisory services increased by 7%, while fees for debt and stock underwriting increased by 39% and 25%, respectively.
Goldman’s investment banking fees rose 21% to $1.73 billion in the quarter. Fees earned from advising on mergers and acquisitions (M&As) jumped 7%, while debt and stock underwriting climbed 39% and 25%, respectively.