Goldman Sachs on Monday reported a 48 percent fall in quarterly earnings after it allocated more funds to help bad debt, but shares rose as they beat analysts’ estimates.
The US investment bank was the latest financial heavyweight to suffer a fall in second-quarter results as the weakening macroeconomic environment prompted it to hold funds in case of defaults.
Operations were mixed, but Goldman clinched a big jump in sales tied to trading amid volatile markets.
Profits for the second quarter were $2.8 billion after revenue fell eight percent to $11.9 billion.
Goldman accrued $667 million, a shift from the prior-year period when earnings were boosted by a $92 million release of reserves.
In a press release, Goldman Chief Executive David Solomon referred to “elevated volatility and uncertainty” in the environment and praised the bank’s performance “in these challenging markets”.
Other bank executives last week alluded to similar concerns over rising inflation, the war in Ukraine and other factors, but said the US economy appeared to be on solid footing for now.
In terms of operations, Goldman suffered a decline in revenue related to mergers and acquisitions advisory and lending.
The bank’s own equity investments posted a loss of $221 million during the period. But Goldman delivered an increase in its consumer banking business.
Shares were up 3.8 percent in premarket trading at $305.05.
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