Goldman Sachs’ earnings in the second quarter of 2016 rose from the first quarter, however revenues are still lagging behind year-ago totals.
The company reported revenues of $7.93 billion, up from last quarter’s $6.34 billion, but down annually from $9.07 billion.
Diluted earnings per common share came in at $3.72, up from $1.98 last quarter and $2.68 last year. Net earnings came in at $1.82 billion for the second quarter, which ended June 30, 2016. This is a 61% increase from the first quarter’s $1.14 billion and a 74% increase from last year’s $1.05 billion.
This was far above analysts predictions of $3 a share on revenue of $7.58 billion, according to a Thomson Reuters consensus.
The company’s net interest income came in at $754 million, a decrease of 15% from last quarter’s $883 million, but an increase of 14% from last year’s $663 million.
The company’s debt underwriting produced net revenues of $724 million, its second highest quarterly performance.
Net revenues in fixed income, currency and commodities client execution were $1.93 billion for the second quarter of 2016, 20% higher than the second quarter of 2015, due to significantly higher net revenues in currencies and credit products, as well as higher net revenues in interest rate products and commodities. These increases were partially offset by significantly lower net revenues in mortgages.
Tuesday, the Wall Street bank announced that it got rid of 1,700 jobs in the past quarter, the firm’s largest quarterly reduction in headcount since the financial crisis, according to an article by Stephen Gandel for Fortune.
Goldman Sachs isn’t the only bank that’s finding it hard to keep up. In fact, mortgage rates are near their all-time lows, which means banks are struggling to balance volume with profitability.