Goldman Sachs earnings jump on lower expenses

[NEW YORK] Goldman Sachs reported a big jump in second-quarter earnings Tuesday as a decline in expenses more than compensated for sluggish activity in merger advising and some other areas.

Earnings jumped 78.4 per cent to US$1.6 billion, while revenues fell 12.5 per cent to US$7.9 billion.

The results for the big US investment bank reflected gains from lower expenses for staff pay and for mortgage-related litigation compared with the year-ago period.

Total staff on the bank's payroll decreased five percent compared with the year-ago period.

Revenues were down for financial advisory services due to a decline in advising for mergers and acquisitions.

Revenues for equity underwriting fell sharply, but rose for debt underwriting as some companies took advantage of low interest rates to refinance.

"Despite the uncertainties created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently," said chief executive Lloyd Blankfein.

Results translated into US$3.72 per share, compared with US$3.00 expected by analysts.

Shares rose 0.4 per cent to US$163.97 in pre-market trade.

AFP