Goldman Sachs profits climb 22% on best trading quarter in firm’s history
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The news: Goldman Sachs traders delivered their biggest quarter in the bank’s history, as turmoil spurred by Trump’s tariffs sparked a second quarter running of record revenue.
The numbers: Second quarter equity trading reaching USD4.3 billion ($6.6 billion), around USD600 million ahead of Bloomberg analysts' expectations. Trading revenue was up 22% from one year ago.
Goldman’s profit jumped 22% to USD3.72 billion in the quarter, amounting to USD10.91 a share, surpassing the USD9.69 a share analysts expected, according to the WSJ.
Revenue rose 15% to USD14.58 billion, ahead of the USD13.58 billion expected.
The context: In keeping with other major US banks which have reported earnings this week, Goldman Sachs traders capitalised on market volatility set off by Trump’s trade tariffs at the beginning of the quarter.
Despite dealmaking volumes remaining muted in the first half of the year across the industry, large deal demand continues to grow. Goldman’s investment banking fees reached USD2.19 billion, 26% higher than the second quarter of 2024, driven largely by advisory fees.
Goldman also said its assets under supervision increased USD120 billion to a record USD3.29 trillion.
What they said: David Solomon, chairman and CEO of Goldman Sachs said in a statement: “At this time, the economy and markets are generally responding positively to the evolving policy environment. But as developments rarely unfold in a straight line, we remain very focused on risk management. Given the strategic decisions and investments we’ve made, we continue to believe that the firm is well positioned to perform for our shareholders.”
The sources: Goldman Sachs results, Goldman Sachs presentation, WSJ, FT, Bloomberg
