The banker’s financial result for the current quarter disclosed that its net income also shrunk by 11% to $962m, or $1.78 per share from a net income of $1.09bn, $1.17 per share during the corresponding quarter in previous fiscal.
The firm said that its annualized return on average common shareholders’ equity (ROE) was 5.4% for the second quarter of 2012 and 8.8% for the first half of 2012.
Revenue in Goldman’s investment banking division dropped by 17% to $1.2bn; mergers and acquisitions revenue slashed by 26% and underwriting revenue curtailed by 9%.
Net revenues in Investment Management were $1.33bn, up by 5% than the second quarter of 2011 and 13% higher than the first quarter of 2012.
The increase in net revenues compared with the second quarter of 2011 was due to significantly higher incentive fees, partially offset by lower management and other fees and lower transaction revenues.
Goldman CEO Lloyd Blankfein said, "During the second quarter, market conditions deteriorated and activity levels for both corporate and investing clients were lower given continued instability in Europe and concerns about global growth."
