Goldman Sachs has reported earnings of $3.44 billion for the second quarter, driven by soaring revenues of $13.8 billion from trading and stock underwriting, reported Financial Times.
The New York-based bank, which paid back $10 billion in TARP funds to the US Treasury in June, earned $4.93 per share for the quarter, up from $3.93 for the previous quarter and against $4.58 during last year. In fact, the bank would have earned $5.71 per share, if it had not made $426 million dividend payment in relation to the repayment of government funds, reported the newspaper.
The bank’s investment banking division, which was in red during the first quarter, surged 75% to register revenues of $1.4 billion. Apart from the fixed income, commodities and currencies (FICC) business, which continued to show upward trend, its equities business posted healthy results during the period, generating $3.2 billion in revenues. Goldman also realised a profit of $948 million from selling its stake in the Industrial and Commercial Bank of China.
Lloyd Blankfein, CEO of Goldman Sachs, said: “While markets remain fragile and we recognise the challenges the broader economy faces, our second quarter results reflected the combination of improving financial market conditions and a deep and diverse client franchise.”
