Goldman Sachs Reports Surprise Profit Increase
July 18 2017 - 8:11AM
Dow Jones News
By Liz Hoffman
Goldman Sachs Group Inc. reported a surprise increase in
second-quarter profit despite tough conditions in its core trading
businesses.
The Wall Street firm reported earnings of $3.95 a share.
Analysts had expected $3.39, on average, down from $3.72 a year
ago. Revenue of $7.89 billion fell from $7.93 billion in the second
quarter of last year, and beat analyst expectations of $7.52
billion.
Rivals including J.P. Morgan Chase & Co. and Citigroup Inc.
reported declines in trading businesses last week. But those were
partially offset by gains in other businesses such as commercial
lending. Earlier Tuesday, Bank of America Corp. reported
better-than-expected results.
For all Goldman's changes since the financial crisis, the firm
run by Chief Executive Lloyd Blankfein is still heavily dependent
on arranging big, complex trades and deals for corporate and
institutional clients. Demand for those services has flagged as
placid markets have churned higher and companies have delayed some
deals, awaiting signs from Washington on tax and regulatory
reform.
Goldman's return on equity, a key measure of how profitably it
invests shareholders' money, stood at 8.7% in the quarter. Goldman
is one of few banks that has reliably exceeded 10% -- a level
typically demanded by investors -- since the crisis.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
July 18, 2017 07:56 ET (11:56 GMT)
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