Goldman profit misses expectations on weak trading
Goldman Sachs Group Inc's second-quarter net income missed market expectations by a wide margin as the investment bank's fixed income trading revenues dropped sharply.
The biggest U.S. investment bank by assets reported earnings of $1.05 billion, or $1.85 per share. Analysts on average expected $2.27 per share, according to Thomson Reuters
I/B/E/S.
A year earlier, adjusted for special charges, Goldman earned $2.75 per share.
Trading in fixed income, currency and commodities dropped far more than analysts expected, hurt by slowing market activity because of weak economic growth and regulatory uncertainty.
Revenue in that division declined a bigger-than-expected 53 percent to $1.6 billion. It was the sixth consecutive quarter of FICC trading declines.
Overall revenue declined 17.6 percent to $7.3 billion, well short of analysts' average forecast of $8.1 billion.
Operating expenses were down 23.3 percent.
Goldman Chief Executive Lloyd Blankfein called the results in some of the bank's divisions disappointing. In a statement, he added, The operating environment was more difficult given global macro-economic concerns.
Goldman shares fell 3 percent to $125.40 in premarket trading.
(Reporting by Lauren Tara LaCapra, editing by Knut Engelmann and John Wallace)
© Copyright Thomson Reuters 2024. All rights reserved.