Goldman Sachs Group Inc (NYSE: GS) reported a 78 % jump in its quarterly profit, significantly exceeding market forecasts, as the US bank increased income from bond trading and reduced costs.
Revenue from asset trading fixed income, currencies and commodities (FICC) rose 20 % to $ 1.93 billion in the second quarter. Total revenue from sales increased 2 % to $ 3.68 billion.
Costs from operating activities fell 25.5 % to $ 5.47 billion.
"Despite the uncertainty provoked by Brexit, we have achieved good results," - said the head of Goldman, Lloyd Blankfein.
Net profit attributable to ordinary shareholders, in the quarter ended June 30, rose to $ 1.63 billion, or $ 3.72 per share, from $ 916 million, or $ 1.98 per share a year earlier, when Goldman has reserved $ 1.45 on the costs associated with the settlement of claims and regulatory affairs related to mortgages.
Analysts polled by Reuters on average expected earnings of $ 3.00 per share.
The main competitor of Goldman, Morgan Stanley (NYSE: MS) will report quarterly results on Wednesday.
The net profit of Bank of America Corp (NYSE: BAC) (BofA), the second largest bank in term of assets in the US, during the second quarter of 2016 decreased by 17.5% to $ 4.23 billion, or 36 cents per share, compared with $ 5.13 billion, or 45 cents per share, in the same period of 2015, the bank said in its statement.
The decrease of index accelerated after a reduction by 13% in January-March due to the continued low interest rates and falling income from trading operations.
The result for the second quarter included the write-off related to the revaluation of the fair value of assets in the amount of about 6 cents per share.
Bank of America's revenue fell 7.1% in the last quarter, from $ 21.96 billion to $ 20.4 billion.
Analysts polled by Thomson Reuters, expected a profit of 33 cents per share on revenue of $ 20.41 billion.
Bank of America Revenues from trading operations rose 14%, from operations in the securities markets fixed income rose 27%, to $ 2.62 billion; however, trading revenue on the stock markets fell 7.6% to $ 1.09 billion.
Capitalization of Bank of America since the beginning of 2016 fell 19%.