Goldman Sachs’ Q2 Earnings More Than Double

Goldman Sachs (GS) said its second-quarter profits rose 101% over last year’s results. The investment bank earned $1.93 billion (before dividends) for the period ending June 30, or $3.70 a share, vs. $962 million, or $1.78 a year earlier. These results beat estimates, as revenue climbed 30% to $8.6 billion from $6.6 billion a year ago.

(Quarter over quarter, sales dropped 15% from $10.1 billion as of March 31, while earnings declined by a similar amount from the prior period.)  

The bank says it nearly tripled revenue from investing in bonds for its own account, to $658 million, thanks to strong profits made before interest rates began to rise late in second quarter.

“The firm’s performance was solid especially in the context of mixed economic sentiment during the quarter,” said Chairman and CEO Lloyd Blankfein, in a press release. “Improving economic conditions in the U.S. drove client activity and the strength of our global client franchise allowed us to deliver positive performance across a number of our businesses.”

Net revenues in investment banking were $1.55 billion, 29% higher than the second quarter of 2012 and essentially unchanged compared with the first quarter of 2013. Net revenues in its financial advisory unit were $486 million, slightly higher than the second quarter of 2012.