By Liz Hoffman 

Goldman Sachs Group Inc.'s quarterly profit held steady from a year ago, bucking larger commercial banks that saw earnings plummet as the coronavirus tore through the U.S. economy.

The bank's profit of $2.4 billion was far better than expected and reflects a flood of corporate fundraising and torrid trading markets, offset slightly by higher reserves for expected loan defaults in what is expected to be a sustained and deep recession.

Quarterly revenue was the second-highest on record at $22 billion, a sign that Goldman -- with a smaller lending footprint than giant commercial banks -- has weathered this leg of the storm in better shape than rivals.

The bank set aside $1.6 billion for loan losses, sharply higher than in the first quarter, which included only a few weeks of the virus's toll. Stock analysts had expected Goldman to earn $1.12 billion, or $3.90 a share. Shares rose 2.5% in premarket trading.

The second quarter was banks' biggest test in more than a decade. Unemployment soared, companies lined up for cash and executives spun up models to see how their businesses would fare in what is likely to be a deep, and possibly sustained, downturn.

Write to Liz Hoffman at liz.hoffman@wsj.com

 

(END) Dow Jones Newswires

July 15, 2020 08:00 ET (12:00 GMT)

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