Goldman profits flat amid weak tradings

NEW YORK: Global financial services giant Goldman Sachs reported flat secondquarter earnings as gains in investment management offset a steep drop in trading revenues due to weak volatility.

Net income was essentially unchanged from the comparable quarter last year at $1.6 billion, while revenues dipped 0.6 per cent to $7.9 billion.

“A mixed operating environment persisted into the second quarter as conditions continued to support underwriting and mergers and acquisitions, while constraining certain market-making activity,” Goldman Chief Executive Lloyd Blankfein said.

Large banks benefited in the second quarter from higher US interest rates, but results have been crimped by limited trading in bonds, foreign exchange and other markets.

Trading has been sluggish due to an absence in volatility compared with a year ago, when results were boosted by the surprise Brexit vote.

At Goldman Sachs, revenues in the closely-watched fixed income, currency and commodities division sank 40 per cent to $1.2 billion.

But a bright spot was Goldman’s revenues from investment management, which rose 13 per cent due to in part to an increase of $33 billion in assets under supervision to $1.4 trillion.

Goldman’s results translated into earnings of $3.95 per share, well above the $3.39 expected by analysts. Even so, the company’s share price slipped 0.7 per cent to $227.75 in pre-market trading. — AFP