Tuesday, 18 July 2017

Goldman Sachs hit by bond trading slide



Bond trading revenues at Goldman Sachs slid 40% in the second quarter, echoing similar declines at other US banks.

 
Revenue from trading fixed income, commodities and currencies was $1.16bn as the US increased interest rates and cut back on bond buying.


Total net revenues for the first half rose 12% to $15.91bn.


Separately, rival Bank of America saw a boost to its profits from tighter interest rate policy.


Goldman posted profits of $1.83bn for the quarter, down from the $2.2bn reported in the first three months of 2017 and only slightly higher than the $1.82bn it reported for the same quarter last year.
Chief executive Lloyd Blankfein said the "mixed operating environment" continued into the second quarter. "Against that backdrop, we produced revenue growth and improved profitability for the first half of 2017, reflecting both the diversity and strength of our global businesses."


Goldman said it ranked first in worldwide mergers and acquisitions for the year-to-date and was also number one for issuing company shares.


At Bank of America, net profit for the second quarter was $4.9bn, 11% higher than for the same period a year ago.


Much of the increase in profit was due to a rise in net interest income following a rise in US interest rates.




BBC     News.