Float fever sweeps Goldman to rise in profits
Goldman managed a 5 per cent rise to $1.95bn
Goldman Sachs put its larger “bulge bracket” rival JP Morgan in the shade yesterday as a revival in floats boosted profits at the Wall Street giant.
Both banks were hit by lower than expected bond-trading volumes, though the decline was smaller than had been feared by analysts. While net profits at JP Morgan fell 8 per cent to $5.99bn (£3.5bn) in the second quarter, Goldman managed a 5 per cent rise to $1.95bn.
Record underwriting revenues from a glut of floats boosted Goldman, as well as increasing the profits of its private equity arm, which cashed in as companies went to market.
While revenues from fixed-income and equity markets slumped by 15 per cent at JP Morgan, its earnings still beat analysts’ expectations.
“Despite continued industry-wide headwinds in markets and mortgages, the firm has continued to deliver a strong underlying performance,” said Jamie Dimon, JP Morgan’s chairman and chief executive, adding that there had been strong growth in consumer and community banking deposits, bank card sales and business loans.
Mr Dimon said: “The corporate and investment bank saw strong performance in fees… commercial banking clients generated record investment banking revenues in the first half of the year. Asset management had excellent performance across all measures.”
Mr Dimon, who is being treated for throat cancer, told a conference call that he was feeling “great” and would remain involved with the company’s operations during his treatment.
Goldman Sachs, meanwhile, said net revenues from fixed-income, currency and commodity trading fell by about 10 per cent to $2.22bn, although analysts had anticipated a bigger fall.
The bank was boosted by a 46 per cent rise in net revenues from its investing and lending division to $2.07bn, as well as strong performances in investment banking, mergers and acquisitions, and investment management.
“We are pleased with our results for the quarter in the context of mixed operating conditions during the period,” said Lloyd Blankfein, its chairman and chief executive.
He added: “This performance was driven by the diversity, strength and breadth of our global client franchise. Good client activity in investment banking and investment management, as well as a better environment for our investing and lending activities, helped offset less favourable conditions for institutional client services.”
- 1 BBC election debate: The one photo that summed up the whole 90-minute leaders debate
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
General Election 2015: David Cameron catching up in polls – but he badly needs a clear lead
South Africa xenophobic attacks: Shops looted and violence on streets of Johannesburg as foreigners are forced to hide in police stations
18th century sex toy found in 'toilet of sword fighting school' in Poland
'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...