Investment bank Goldman Sachs published its second-quarter earnings report on Monday, topping analysts’ expectations and revealing that its profit soared 150% compared to the same period last year.
Goldman Sachs benefited from incurring smaller loan loss provisions than predicted and better fixed income results than the bank internally expected. Its focus on asset and wealth management and exit from consumer banking paid off, with a surge in investment banking fees of 21% also playing a big role.
The bank reported $8.62 in earnings per share versus $8.34 estimated by analysts, while its revenue of $12.73 billion easily cleared the expected $12.46 billion mark.
Investment banking is rebounding after a challenging couple of years for the sector, and Goldman Sachs expects to have even better results in the second part of the year.
“We are in the early innings of capital markets and M&A recovery, and while certain transaction volumes are still well below their tenure averages, we remain very well positioned to benefit from a continued resurgence of activity,” CEO David Solomon said during a conference call with analysts.
Goldman Sachs’ shares jumped 2.57% after the earnings report, closing at $492.23 per share on Monday. The stock is currently 26.77% up year-to-date.