Goldman Sachs posted a 17 percent decline in trading revenue in the second quarter, mirroring a broader weakness in bond trading activity that has plagued big U.S. banks.
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Goldman, the fifth largest U.S. bank by assets, is typically more reliant on bond trading revenue than its peers.
Revenue from trading fixed income, commodities and currencies fell 40 percent to $1.16 billion.
The Wall Street bank's net income applicable to common shareholders was nearly flat at $1.63 billion in the second quarter ended June 30.
Earnings per share, however, rose to $3.95 from $3.72 as number of shares outstanding decreased nearly 6 percent.
Analysts had expected earnings of $3.39 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the figures were comparable.
Total revenue, including net interest income, fell 0.6 percent to $7.89 billion.
Goldman's rival Morgan Stanley is expected to report earnings on Wednesday.
(Reporting by Sweta Singh in Bengaluru and Olivia Oran in New York; Editing by Sriraj Kalluvila)