The New York-based firm earned a net income of $1.82bn in the April-June quarter compared to $1.05bn in the same quarter last year.
However, it revenue declined 13% to $7.93bn from $9.07bn in the year-ago quarter.
Goldman Sachs chairman and chief executive officer said: “Despite the uncertainty created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently.”
Its revenues from investment banking fell 11% to $1.79bn in the quarter on year-over-year basis.
Revenue from institutional client services were up 2% to $3.68bn in the quarter, led by a strong performance in fixed income, currency and client execution divisions.
Goldman Sachs said: “Although market-making conditions generally improved compared with the first quarter of 2016, Fixed Income, Currency and Commodities Client Execution continued to operate in a challenging environment characterized by low interest rates, political uncertainty and concerns about global growth.”
But the firm’s revenue from equities dropped 12% to $1.75bn in the quarter, due to significantly lower net revenues in both cash products and derivatives in Asia.
Its investment management division posted a revenue of $1.35bn for the June quarter, down 18% in the corresponding quarter in 2015.
The firm attributed the decrease in revenues from the division to significantly lower incentive fees.
Goldman Sachs posted a sharp reduction in its operating expenses to $5.47bn in the quarter, down 26% from the second quarter last year. Its compensation and benefits expenses were 13% lower at $3.3bn in the quarter.
The bank witnessed 5% decline in its total headcount during the quarter.
Goldman CFO Harvey Schwartz was quoted by Fortune as saying that the company had initiated a cost-cutting plan that will result in annual savings of $700m.
Schwartz said: “We view this as a very thoughtful exercise.”
Image: Goldman Sachs Headquarters, at 200 West Street, in Manhattan. Photo courtesy of Quantumquark/Wikipedia.
