Higher stock underwriting revenue boosts Goldman profit
By Anil D'Silva and Lauren Tara LaCapra
(Reuters) - Goldman Sachs Group Inc GS.N posted a 5 percent rise in quarterly profit, spurred by higher revenue from stock underwriting and a smaller decline in fixed-income trading than many on Wall Street had predicted.
The bank's stock was up 0.7 percent at $168.17 on Tuesday morning on the New York Stock Exchange.
Goldman posted net income for shareholders of $1.95 billion, or $4.10 per share, in the three months ended June 30, up from $1.86 billion or $3.70 per share in the same period a year earlier.
Analysts on average had expected earnings of $3.05 per share, according to Thomson Reuters I/B/E/S.
Institutional investors have been shying away from the bond market because of a lack of strong opinions about interest rates and currency moves.
Rival banks Citigroup Inc C.N and JPMorgan Chase & Co JPM.N said a pickup in trading volume in June helped offset slowness in April and May.
"The sustainability of that trend is in question," said Brian Kleinhanzl, a research analyst at Keefe, Bruyette & Woods who rates Goldman a "market perform."
JPMorgan said on Tuesday that the June improvement in bond trading has not carried over to July. Continued...