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VOL. 48 | NO. 28 | Friday, July 12, 2024

Goldman Sachs profits more than double in second quarter as dealmaking comes back on Wall Street

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NEW YORK (AP) — Goldman Sachs is posting a 150% jump in second quarter profits Monday, helped by a resurgence of dealmaking and underwriting that has revived investment banking after the slowdown of the previous couple years.

The New York investment bank posted net earnings of $3.04 billion, $8.62 per share, compared with $1.22 billion in the same period a year earlier. For the three months ended June 30, compared with $1.22 billion, or $3.08 per share, a year earlier.

Part of the surge in profits came from Goldman Sachs booking some one-time items last year as it took charges for the wind-down of its consumer banking business.

That said, nearly every aspect of Goldman's businesses saw revenue jump in the quarter, reflecting what has been a broad revival in dealmaking and activity on Wall Street this year in a healthy economy.

Investment banking fees rose 21%, helped by a big jump in debt underwriting fees for the bank. Many companies are having to refinance their debts to deal with higher interest rates, and there has been a surge in leveraged financing packages

Goldman's fixed income, currencies and commodities trading division had revenues up 17% from a year earlier. Equities trading was less robust than other parts of the market, with Goldman saying net revenues were up 7% in that division.

Lastly the bank's asset-management division posted 27% rise in revenues, helped by more fee income and the value of Goldman's own investments.

Shares in Goldman Sachs Group Inc. ended Monday up $12.35, or 2.6%, at $492.23.

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This story has been updated to read that the company reported net earnings, not net revenues, of $3.04 billion.

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