Goldman Sachs' Q2 beats forecasts on fixed-income boom

Net income for the three months to the end of June rose 2% to $2.25bn (£1.8bn) as net revenue jumped 41% to $13.3bn. The revenue surge more than offset an increase in credit loss provisions to $1.59bn from $214m and a $945m litigation charge.

Diluted earnings per share rose to $6.26 from $5.81. Analysts' average forecast was for earnings of $3.78.

Revenue from fixed income, currencies and commodities, Goldman's biggest business, rose to $4.24bn from $1.7bn, hitting a a nine-year high as markets remained active. Equities had its best quarter for 11 years, posting $2.94bn of revenue, up 46%.

Goldman's investment banking business had record quarterly revenue of $2.66bn, up 36%, as the bank underwrote debt and equity issues by companies strengthening their balance sheets during the coronavirus emergency.

David Solomon, Goldman's chief executive, said: "Our strong financial performance across our client franchises demonstrates the inherent benefits of our diversified business model. While the economic outlook remains uncertain, I am confident that we will continue to be the firm of choice for clients around the world who are looking to reshape their businesses and rebuild a more resilient economy.”