Goldman Sachs recovers on booming fees from firms’ floating frenzy

 
Tim Wallace
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Goldman Sachs reported profits of $9.2bn (Source: Getty Images)
Goldman Sachs’ profits jumped in the second quarter as soaring revenues from stock market flotations outweighed the sustained crunch in bond trading income.

The bank yesterday reported profits of $9.2bn (£5.4bn), up six per cent on the same three-month period of 2013.

Investment banking revenues surged 15 per cent on the year to $1.8bn, with improvements in every business unit.

Equity underwriting led the growth, with revenues up 47 per cent to $545m.

Debt underwriting improved five per cent to $730m, and advisory revenues climbed four per cent to $506m.

Investing and lending revenues BY TIM WALLACE soared 46 per cent to come in at $2.1bn in the three-month period.

Those helped Goldman overcome the 11 per cent drop in institutional client services revenues.

The problems there were driven again by a fall in the biggest component, fixed income, currencies and commodities (FICC) trading, which dropped 10 per cent to $2.2bn.

Equities trading revenue fell 25 per cent to $483m, and commissions and fees fell 10 per cent to $751m.

Pay and bonuses increased six per cent to $3.9bn, while headcount fell one per cent.

Goldman’s common equity tier one capital buffer increased from 11.3 per cent in March to 11.4 per cent in June.

The bank’s shares edged up 1.38 per cent on the day.

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