Goldman Sachs reported a lower-than-expected quarterly profit as gains in investment banking were offset by weak trading revenue.
Total revenue from trading fell 2.4 per cent to $3.36 billion, the lowest in five quarters. Revenue from fixed-income securities, currencies and commodities trading rose just 1.3 per cent to $1.69 billion.
“The operating environment was mixed, with client activity challenged in certain market-making businesses,” chief executive Lloyd Blankfein said in a statement. Goldman’s trading results were in sharp contrast to those from JPMorgan Chase & Co and Bank of America, which reported a rise in trading revenue.
Shares of Goldman were down 3 per cent in premarket trading. Goldman has historically relied more on trading than other big banks, but has been trying to shift to stable businesses such as investment management. Earnings per share rose to $5.15 from $2.68.
Total operating expenses rose 15.2 per cent to $5.49 billion. Morgan Stanley, Goldman’s traditional rival, reports earnings on Wednesday.
– (Reuters)
