Goldman Sachs triumphed over all expectations today, reporting a surge in profits for its most recent quarter.
The US banking giant reported net earnings for the three months to June of $1.8bn (£1.4bn), a massive 74 per cent increase on just over $1bn the year before and a 61 per cent increase from $1.1bn in the prior quarter.
Earnings per share for the most recent quarter were $3.72, leaping over Thomson Reuters' analyst consensus of $3 and beating last year's $1.98 by 88 per cent.
Revenues, however, were not so stellar. The company reported revenues net of interest income of $7.9bn, down 13 per cent from $9.1bn the year before but an increase of 25 per cent on $6.3bn in the quarter before.
However, the market wasn't impressed by the news, with shares trading down 0.8 per cent at $161.96 in pre-market trading at time of writing.
Why it's interesting
US banking earnings have not been great as of late, with profits dropping sharply at major names like Citigroup and Bank of America. However, so far, banks have managed to beat, or at least match, analyst expectations.
Goldman has outpaced the analyst consensus by a wide margin.
However, although the 74 per cent bottom line boost looks incredibly impressive in a spreadsheet, the bank added a large chunk to its litigation provision this time last year, which dragged down profits for that earlier period.
In general, Goldman Sachs has got a grasp on its costs in comparison to the year before, with operating expenses down to $5.5bn, a 26 per cent decrease on the year before but a 15 per cent increase compared to the first quarter of 2016.
The Brexit vote last month made many fear for the banks, as the resulting uncertainty meant many investment decisions were placed on the backburner. Meanwhile, low interest rates have made it difficult for banks to raise revenues using their traditional product range.
What Goldman Sachs said
"Despite the uncertainty created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently," said Lloyd Blankfein, chairman and chief executive of the banking giant.
Less expenses means better results than anybody could have predicted