Goldman Sachs has reported a 47% drop in profits for the second quarter at the hands of depleted deal making and asset management performance.
The bank’s net income fell from $.5.5 billion to $2.9 billion in comparison with the same period last year thanks to a 41% decrease in investment banking net revenues driven by losses in underwriting.
Competitors Morgan Stanley, JP Morgan and Citigroup all also reported losses of around 50% in their investment banking divisions.
Asset management net revenues also took a major hit, falling 79% in comparison with last year to $1.08 billion thanks to net losses in equity investments caused by macroeconomic concerns and the war in Ukraine, and lower net revenues in lending and debt investments.
The impacts were only slightly offset by a strong performance in in its global markets division which saw net revenues rise 32% to $6.47 billion. Income for FICC rose 55% to $3.61 billion on the back of activity in interest rate products, commodities and currencies. Equities revenues also rose 11% to $2.86 billion due to increased activity.
“Despite increased volatility and uncertainty, I remain confident in our ability to navigate the environment, dynamically manage our resources and drive long-term, accretive returns for shareholders,” said Goldman Sachs chairman and chief executive, David Solomon.