Connect with us

Hi, what are you looking for?

News

Goldman Sachs’ Profit, Revenue Jump

Goldman Sachs’ Profit, Revenue Jump

Goldman Sachs offices in New York City last month.



Photo:

Gabby Jones for The Wall Street Journal

Goldman Sachs Group Inc.’s

GS 2.35%

profit shot higher in the second quarter, as accelerating economic growth and market gains lifted many of the Wall Street firm’s business lines.

Goldman reported quarterly profit of $5.49 billion, or $15.02 a share, on revenue of $15.39 billion. Both measures were up significantly from a year ago and better than the expectations of analysts polled by FactSet, who forecast profit of $10.25 a share.

This spring’s rapid U.S. economic recovery, helped by the rollout of Covid-19 vaccines and extensive business reopening and hiring, energized banks’ deal makers. Corporate chieftains and buyout firms put hundreds of billions of dollars to work in big-ticket acquisitions. Investors gobbled up billions of dollars of stock sold by startups in marquee initial public offerings and private fundraising rounds. Goldman’s investment bankers brought in $3.61 billion in fees in the second quarter, up 36% from last year’s second quarter.

Meanwhile, the decline in volatility from last spring’s market swoons damped activity on Goldman’s trading desk. Revenue from trading totaled $4.9 billion, down 32% from a year ago, when markets were more erratic. Still, the results were historically strong.

Goldman’s overall bottom line expanded at an especially brisk pace because of a one-time legal charge it booked a year ago. A settlement Goldman reached last summer with the government of Malaysia over its dealings with a corrupt investment fund there subtracted $2 billion from its earnings in the second quarter of 2020, making this quarter’s earnings loom large in comparison.

Shares in Goldman are up 44% since the start of 2021 and hit a record high of $391.45 in June. Last month, Goldman raised the dividend it paid shareholders to $2 from $1.25.

Write to Peter Rudegeair at Peter.Rudegeair@wsj.com

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

You May Also Like

World

France, which has opened its borders to Canadian tourists, is eager to see Canada reopen to the French. The Canadian border remains closed...

Health

Kashechewan First Nation in northern Ontario is experiencing a “deepening state of emergency” as a result of surging COVID-19 cases in the community...

World

The virus that causes COVID-19 could have started spreading in China as early as October 2019, two months before the first case was identified in the central city of Wuhan, a new study...

World

April Ross and Alix Klineman won the first Olympic gold medal for the United States in women’s beach volleyball since 2012 on Friday,...