NEW YORK — Goldman Sachs shares rose sharply after the Wall Street bank delivered stronger-than-expected second-quarter results, driven by record trading revenue, a rebound in investment banking activity and broad-based gains across its businesses.
The bank reported net earnings of $6.63 billion, or $20.98 per diluted share, for the quarter ended June 30, up from $3.72 billion, or $10.91 per share, a year earlier. Net revenue increased 39% year on year to $20.34 billion, reflecting strength in Global Banking & Markets as client activity accelerated and capital markets remained active.
Goldman Sachs shares climbed following the earnings release as investors welcomed the results, which exceeded analysts' expectations and underscored the firm's ability to capitalize on increased market volatility and a pickup in corporate dealmaking.
Chairman and Chief Executive David Solomon said the firm's performance reflected the strength of its global franchise and growing momentum across its businesses.
"Our record performance this quarter reflects the strength of our global franchise, the depth of our relationships, and our ability to harness the power of One Goldman Sachs," Solomon said in the company's earnings statement. He added that the firm's transaction pipeline remained strong and that clients continued to seek advice on strategic deals and financing.
Global Banking & Markets generated $15.52 billion in revenue during the quarter, up 53% from a year earlier. Equities trading posted record revenue, while fixed-income, currency and commodities trading also recorded strong gains, benefiting from heightened client activity amid geopolitical uncertainty and shifting expectations for U.S. interest rates. Asset & Wealth Management also contributed higher revenue during the quarter.
The company also announced it would increase its quarterly common-stock dividend to $5.00 per share beginning in the third quarter, according to its earnings release.
Goldman Sachs' results added to evidence of a stronger quarter for major U.S. banks as investment banking fees and trading income rebounded. Market participants have pointed to improving merger and acquisition activity, equity underwriting and sustained client engagement despite continued macroeconomic uncertainty.
The earnings were released as investors assessed the broader U.S. corporate reporting season, with analysts expecting solid profit growth across the S&P 500. Market attention has now shifted to additional earnings reports from large technology and financial companies in the coming days.
