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US-BANKING-EARNINGS
Goldman Sachs profits surge on strong merger, IPO activity
NEW YORK, July 17, 2018 (BSS/AFP) – Goldman Sachs reported a jump in second-
quarter earnings Tuesday due in large part to strong activity in merger and
acquisitions and other corporate transactions.
Net profits came in at $2.3 billion, up 44 percent from the year-ago
period.
Revenues rose 19 percent to $9.4 billion.
The results easily topped Wall Street analyst expectations.
Areas of strength included advisory services connected to an industry-wide
uptick in merger and acquisitions advisory services and much higher equity
underwriting revenues due to a surge in initial public offerings.
Goldman Sachs also said its backlog on additional transactions was
“significantly higher” than in the first quarter.
Revenues in Goldman’s trading businesses also grew thanks to a jump in
trading for fixed income, currency and commodities.
Trading revenues in equities was essentially flat, with Goldman citing
lower volatility compared with the heady first quarter of 2018.
Goldman Sachs also reported gains in revenues for its investing and lending
and investment management businesses.
“Solid performance across all of our major businesses drove the strongest
first-half returns in nine years,” said chief executive Lloyd Blankfein.
“With a healthy economic backdrop and deep client franchises, the firm is
well-positioned to invest in attractive opportunities to meet the needs of
our clients and continue to generate earnings growth.”
The investment bank announced a succession plan on Tuesday, with president
David Solomon taking over for Blankfein.
Shares of Goldman Sachs dipped 0.7 percent to $229.50 in pre-market
trading.
BSS/AFP/SR/1920 HRS