Goldman Sachs reported on Tuesday that its second-quarter profit doubled compared with results in the period a year earlier.
Net income was $1.93 billion, or $3.70 a share, compared with $962 million, or $1.78 a share, in the period a year earlier. It was also well ahead of analysts’ expectations of $2.83 a share, according to Thomson Reuters.
The firm made this profit on revenue of $8.6 million, compared with $6.6 billion a year ago.
“The firm’s performance was solid, especially in the context of mixed economic sentiment during the quarter,†Goldman’s chairman and chief executive, Lloyd C. Blankfein, said in a press release.
The quarter was dominated by a sudden - and sharp - rise in interest rates after the Federal Reserve indicated that it may wind down its big bond purchase program that has helped the economy recovery from the financial crisis. Goldman is not a big player in originating mortgages like rival JPMorgan Chase, but it does trade mortgage products.
The rates move was felt most in Goldman’s fixed-income, or bond, department. Net revenue in the unit was $2.46 billion, up 12 percent compared with results in the period a year earlier, reflecting what the company said was significantly higher net revenues in currencies, credit products and commodities. Still, these increases were offset in part by significantly lower revenue in mortgages and interest rate products, the company said.
