Goldman Sachs Group Inc's net income rose during the second quarter but fell short of lowered market expectations as fixed income trading revenue dropped sharply.

The biggest U.S. investment bank by assets earned $1.05 billion, or $1.85 per share, more than double the $453 million, or 78 cents per share, of a year earlier, Goldman said on Tuesday.

Revenue dropped 17.6 percent to $7.3 billion, while expenses fell a more dramatic 23.3 percent. Fixed income, currency and commodities trading revenue fell 53 percent to $1.6 billion.

Analysts, on average, had forecast earnings of $2.27 per share on revenue of $8.1 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Lauren Tara LaCapra, editing by Knut Engelmann and John Wallace)