Goldman Sachs profit doubles on stronger bond trading

Financial Post | Business

Goldman Sachs Group Inc’s quarterly profit doubled, beating Wall Street estimates by a wide margin, as the bank made more from investing its own money and from underwriting.

Goldman’s net income rose to US$1.86 billion, or US$3.70 per share, in the second quarter from US$927 million, or US$1.78 per share, in the same quarter last year.

Analysts on average had expected earnings of US$2.82 per share, according to Thomson Reuters I/B/E/S.

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Goldman shares were up 1.3% at US$165.13 before the bell.

Revenue in the bank’s fixed income, currency and commodities, or FICC, trading unit, which reflects income from client trading, rose 12% to US$2.46 billion.

Goldman’s investing and lending unit, which invests the firm’s own capital, generated revenue of US$1.42 billion in the quarter, up from US$203 million a year earlier, driven by a tripling of revenue from debt securities and loans.

The bank’s net revenue rose 30%…

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