Goldman profits surge 150% from year ago on Wall Street rebound

Goldman Sachs (GS) reported that its second-quarter profits soared 150% from a year ago as investment banking surged, the latest signal that Wall Street is warming up after a two-year drought.

Net income was $3.04 billion, which beat analyst expectations. Its total revenues of $12.73 billion also rose 17% from a year ago.

The result gives CEO David Solomon more momentum following his most challenging year ever as boss.

A year ago he was grappling with a dealmaking slump, a costly exit from consumer banking and a series of high-profile departures from the firm.

Goldman’s stock was up by more than 1% in pre-market trading Monday. As of last Friday’s close, the stock had climbed 24% year to date.

It is up 114% since Solomon took over nearly six years ago.

“We are pleased with our solid second quarter results and our overall performance in the first half of the year, reflecting strong year-on-year growth,” Goldman Solomon said.

Goldman is the latest big bank to demonstrate is is benefitting from an investment banking rebound.

On Friday, JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C) each posted sizable jumps in the revenue stream compared with the second quarter of last year.

The revival provided a boost to those banks at a time of rising challenges for their Main Street consumer operations.

Goldman is even more reliant on Wall Street for its performance. Its investment banking fees rose 21% from a year ago, to $1.7 billion, led by big jumps in debt and equity underwriting. Advisory fees were also up, by 7%.

Its fixed-income trading revenue also rose 17% year over year. Asset and wealth management revenues also increased.

However, Goldman’s investment banking performance did drop when compared to the first quarter. Fees dipped by 17%.

David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance.

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