Speaking at a conference call with analysts on Wednesday, Goldman Sachs CEO David Solomon acknowledged that the investment bank had a “tough” second quarter. But despite this, Solomon said he feels “very, very good” about Goldman’s recent strategy changes.
Goldman Sachs reported $1.1 billion in profit for the second quarter, which is 58% down compared to the same period in 2023. The revenue came at $10.9 billion, marking an 8% dip but still coming above the expected $10.6 billion. The bank also reported $3.08 in earnings per share, coming under the $3.16 that the Wall Street analysts expected.
“This was obviously a tough quarter, but we also had one-off items that we put in,” Solomon said during the conference call.
However, Solomon feels that the strategic shift that includes moving away from consumer banking and focusing on capital markets will end up yielding positive results for Goldman Sachs.
“But I feel very, very good about the strategic decisions that we’re making, the execution that we’re working on, the progress we’re making in asset and wealth management, and we as a leadership team see a clear path to improvement in a better operating environment,” he added.
It appears that investors share Solomon’s optimism as Goldman Sachs’ stock has jumped by 4.22% in the past five days and traded at $345.00 per share at its highest on Wednesday.