Goldman Sachs reported second-quarter profits that surpassed Wall Street expectations, driven by a record increase in equities revenue amid turbulent markets. Equities revenue rose by 36% to $4.3 billion, exceeding analysts' estimates. Fixed income, currencies, and commodities revenue increased by 9% to $3.47 billion. A rebound in dealmaking led to a 26% rise in investment banking fees, totaling $2.19 billion. Despite ongoing trade policy uncertainty, Goldman retained its position as the leading adviser for global mergers and acquisitions in the quarter.
"A narrowed range of outcomes on trade and the overall economy has helped CEO confidence and increased their willingness to transact," Goldman CEO David Solomon said. "We've seen a pickup in momentum with both strategic and sponsor clients."
"The well-above consensus rise in investment banking was (a surprise), with a lot of analysts snookered into thinking that macro uncertainty would hold back this line item more than it did," said Steph.
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