Goldman Sachs has posted a net income of $1.82bn for the second quarter of 2016, a surge of 73% compared $1.05bn in the year-ago quarter. Diluted earnings per common share were $3.72 compared with $1.98 for the second quarter of 2015.
However, net revenues dropped 13% year-on-year to $7.93bn from $9.07bn. For the quarter ended 30 June 2016, the company’s net provisions for litigation and regulatory proceedings were $126m compared with $1.45bn in the second quarter of 2015.
Net revenues in Investment Management unit were $1.35bn for the second quarter of 2016, down 18% compared with the year ago quarter of 2015. Management and other fees were slightly lower, reflecting shifts in the mix of client assets and strategies, partially offset by the impact of higher average assets under supervision, the company said in its earnings statement.
During the quarter, Investment Management unit’s total assets under supervision increased $23bn to $1.31 trillion. Long-term assets under supervision increased $20bn, reflecting net market appreciation of $19bn, primarily in fixed income and equity assets, and net inflows of $1bn. In addition, liquidity products increased $3bn.
Net revenues in Institutional Client Services division were $3.68bn for the second quarter of 2016, 2% higher than the second quarter of 2015. Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.93bn, 20% higher than the second quarter of 2015.
Net revenues in Equities were $1.75bn for the second quarter of 2016, 12% lower than the second quarter of 2015.
Goldman Sachs chairman and CEO Lloyd Blankfein said: “Despite the uncertainty created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently.”