Goldman Sachs reports $3.7B profit in Q2, beats analyst expectations
What's the story
Goldman Sachs has reported a massive profit of $3.72 billion for the second quarter of 2025, beating analyst expectations. The bank's earnings per share stood at $10.91, significantly higher than the predicted $9.53 by analysts at the London Stock Exchange Group. This stellar performance was largely driven by a strong recovery in trading and investment banking activities, despite market uncertainty due to US President Donald Trump's tariffs.
Trades
Trading division makes strong comeback this quarter
Goldman Sachs's trading division saw a major comeback this quarter, with equities trading raking in a record $4.3 billion in revenue. This was $840 million more than analysts had expected. Even its fixed income, currencies, and commodities (FICC) trading unit exceeded expectations with revenues of $3.5 billion—up 9% year-over-year—despite market volatility from Trump's new tariffs on Asian tech products and metals.
Banking rebound
Investment banking brought in $2.2B
Goldman Sachs's investment banking division brought home $2.2 billion, a whopping 26% increase from last year. The growth was fueled by an uptick in mergers and acquisitions (M&A) and capital raising activity, especially in the healthcare and tech sectors. This turnaround added around $400 million more than expected, contributing to the rise of GS stock.
Mixed performance
Other divisions showed mixed results
Other divisions of Goldman Sachs showed mixed results. Asset and wealth management dipped slightly to $3.78 billion, down roughly 3%. The bank also added $384 million in credit loss provisions, largely related to its credit card portfolio. Despite these challenges, Goldman passed the Federal Reserve's stress test and announced a dividend increase of $1 per share starting Q3.