Goldman Sachs
A sign is displayed in the reception of the Sydney offices of Goldman Sachs in Australia, May 18, 2016. REUTERS/David Gray

Goldman Sachs Group Inc's quarterly profit jumped 78 percent, handily beating market expectations, as the Wall Street bank earned more from bond trading and its expenses fell.

Revenue from trading fixed income, commodities and currencies (FICC) rose 20 percent to $1.93 billion in the second quarter. Total revenue from trading rose 2 percent to $3.68 billion.

Revenue from fixed income rose 35 percent at JPMorgan Chase & Co, 14 percent at Citigroup Inc and 22 percent at Bank of America Corp.

Goldman's total operating expenses fell 25.5 percent to $5.47 billion.

The bank, like other Wall Street firms, has been focusing on cutting costs as concerns about slowing growth in China and other major markets discourage dealmaking and trading.

"Despite the uncertainty created by Brexit, we achieved solid results," Chief Executive said Lloyd Blankfein said in a statement.

Investment banking revenue, which includes income from advising on deals and underwriting bond and stock offerings, fell 11 percent to $1.79 billion.

Global investment banking fees for the industry fell by nearly a quarter in the first half of 2016 as volatility hit capital markets and dealmaking, according to Thomson Reuters data.

Net income applicable to Goldman's common shareholders rose to $1.63 billion, or $3.72 per share, in the quarter ended June 30 from $916 million, or $1.98 per share, a year earlier, when Goldman set aside $1.45 billion for regulatory and mortgage-related legal settlements.

Analysts on average had expected earnings of $3.00 per share, according to Thomson Reuters I/B/E/S.

Goldman's arch rival, Morgan Stanley, reports quarterly results on Wednesday.

Goldman shares were up slightly at $163.70 in premarket trading on Tuesday. Up to Monday's close, the stock had fallen more than 9 percent this year.