Shares in Goldman Sachs (NYSE:GS) slipped on Tuesday after the Wall Street giant updated the market with its quarterly results.
Whilst the Bank reported an unexpected second-quarter profit, Goldman Sachs noted a decline in its core trading business amid a tough climate which the bank described as “challenging” and “characterised by low levels of volatility, low client activity and generally difficult market-making conditions”.
Overall, the bank reported earnings of $3.95 a share, ahead of analysts expectations of $3.39, on average, and down from $3.72 a year ago.
Revenue fell to $7.89 billion from $7.93 billion in the second quarter of last year, surpassing analyst expectations of $7.52 billion.
Investment banking revenue fell 3 percent from a year earlier, largely due to a drop in advisory fees across the period.
Trading, on which Goldman is still very much focused, fell steeply for the quarter. Notably, the bank suffered a 40 percent drop in revenues from its fixed income, currency and commodities trading.
Ultimately, the bank reported a 17 percent decrease in trading revenues, the largest of any big bank which has reported its second quarter thus far.
Conversely, trading revenue fell 14 percent at J.P. Morgan (NYSE:JPM), 9 percent at Bank of America and 7 percent at Citigroup (NYSE:C), respectively.
Chief Executive Lloyd Blankfein commented on the results:
“A mixed operating environment persisted into the second quarter as conditions continued to support underwriting and M&A, while constraining certain market-making activity.”
“Against that backdrop, we produced revenue growth and improved profitability for the first half of 2017, reflecting both the diversity and strength of our global businesses.”
Blankfein has served as Chief Executive and Chairman of the investment bank since 2006, and remains one of the industry’s highest paid executives.
Shares in Goldman Sachs are currently up a marginal 0.09 percent, after initially plunging during pre-market trading.
Wall Street rival bank Morgan Stanley is set to report its earnings on Wednesday.