Goldman Sachs's quarterly profit rises 5 percent, helped by record investment banking results
Goldman Sachs said Tuesday that its quarterly profit rose 5 percent helped by record results from investment banking.
Second-quarter net income rose to $1.95 billion from $1.86 billion a year earlier, the bank said early Tuesday. That's after paying dividends on preferred stock.
Revenue increased 6 percent to $9.13 billion over the year. That was much better than the $7.97 billion analysts had expected, according to the data provider FactSet. Goldman reported a record $1.28 billion in revenue for helping companies sell stocks and bonds, up 20 percent from the same period a year ago.
On a per-share basis, quarterly earnings were $4.10, handily beating analysts' forecasts of $3.05.
Analysts had expected weak revenue from trading stock and bonds to hamper the New York investment bank's results.
Compensation, the bank's biggest single cost, was $3.9 billion, up 6 percent from the year before.
Goldman's stock climbed $3.18, or 2.5 percent, to $170.25 in premarket trading.