Goldman Sachs (GS) reported stronger-than-expected second-quarter earnings results on Wednesday as rising earnings despite the pandemic bolstered the bottom line and its share price.
These were the key figures against expectations for the second quarter, according to analysts surveyed by Bloomberg.
The Wall Street giant saw huge gains across all of its major lines of business, joining JPMorgan Chase (JPM) to beat market expectations even as COVID-19 tightened its grip on the global economy.
Goldman Fixed Income, Foreign Exchange and Commodity Sales and Trading Revenue (FICC) $ 4.23 billion, the highest quarterly revenue in nine years. Meanwhile, the stock trade generated $ 2.94 billion in revenue, its best quarter in 11 years. Collectively, those businesses represented 54% of Goldman’s quarterly revenue.
The company’s main investment banking business posted $ 2.66 billion in profit, 36% more than in the same period last year.
“The turmoil we have seen in the past few months only reinforces our commitment to the strategy we outlined earlier this year for investors,” CEO David Solomon said in a statement.
“While the economic outlook remains uncertain, I am confident that we will continue to be the company of choice for customers around the world looking to remodel their businesses and rebuild a more resilient economy,” he added.
The bank’s consumer and wealth management business recorded $ 1.36 billion in quarterly revenue, 9% more than last year. The fledgling digital banking business saw an increase in consumer deposits of $ 20 billion to end the quarter at $ 92 billion.
Elsewhere, Goldman set aside $ 945 for litigation and regulatory proceedings compared to $ 66 million a year ago.
Goldman’s shares rose nearly 3% in pre-market stock to exceed $ 219 per share, up from Tuesday’s closing price of $ 214.01.
