Goldman Sachs has released its Q2 earnings, reporting a decline in net revenue attributed to lower revenues within its global banking and markets division.
The bank saw net revenues total $10.9 billion, down 8% year-on-year and 11% lower than the first quarter of this year.
Net revenues within its global banking and markets division declined to $7.19 billion, 14% lower than the same period last year.
Fixed income, currency and commodities figures played a role in this decline, with net revenues totalling $2.71 billion, 26% lower than the strong quarter results achieved in the same quarter last year.
Elsewhere, investment banking fees were down too, reaching $1.43 billion – down 20% year-on-year, reflecting a slowdown seen among other Wall Street rivals including Citi.
Net revenues in equities were relatively more positive, given that they remained almost unchanged compared to Q2 2022, totalling $2.97 billion in Q2 2023. The bank attributed this to significantly higher net revenues in equities financing, primarily in prime financing, which was offset by lower net revenues in equities intermediation, primarily in derivatives.
“This quarter reflects continued strategic execution of our goals. Global banking and markets delivered solid returns in an environment with cyclically low activity levels […] I remain fully confident that continued execution will enable us to deliver on our through-the-cycle return targets and create significant value for shareholders,” said David Solomon, chairman and chief executive of Goldman Sachs.
Over the last few days, major banks have released their quarterly earnings. Most recently, Bank of America reported its highest H1 sales and trading revenue in over a decade.
Meanwhile, Morgan Stanley and JP Morgan both reported solid quarters with increases in revenues year-on-year.