Goldman Sachs Q2 earnings: Profit jumps 20% to $3.5 billion on advisory & equities boost; revenue up 15% to $14.6 billion
Total revenue for the quarter rose 15% to $14.6 billion, with the investment banking giant topping analyst expectations. Goldman attributed the increase in advisory fees to strong performance in the Americas and EMEA (Europe-Middle East-Africa) regions. Its growing investment banking fee backlog signalled a likely uptick in mergers, acquisitions, and initial public offerings.
Bankers have become more bullish on dealmaking since
Donald Trump
's victory in the November 2024 presidential election.
However, in the first quarter, activity had slowed as the White House focused on evolving trade policies. Executives across rival financial services firms have now expressed hopes for stronger deal momentum despite ongoing tariff uncertainty.
In its markets division, Goldman reported particularly strong performance in equities—specifically in equities financing and intermediation, where the bank acts as a go-between for clients—offsetting weaker revenue from its Asset and Wealth Management segment.
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Commenting on the broader outlook, Goldman Sachs CEO David Solomon said, 'At this time, the economy and markets are generally responding positively to the evolving policy environment. But as developments rarely unfold in a straight line, we remain very focused on risk management.'
Shares of Goldman Sachs rose 1.2% in pre-market trading, AFP noted.
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