Goldman posts higher Q2 profit on cost cuts, legal provision

New York

GOLDMAN Sachs Group Inc reported a higher second-quarter profit on Tuesday, as it benefited from a sharp decline in expenses and more activity in some parts of the fixed-income markets, but most of its businesses came under pressure.

In response to a "challenging backdrop" for revenue, the Wall Street bank embarked on a cost-cutting plan in the first half of the year that will save US$700 million a year, chief financial officer Harvey Schwartz said on a conference call.