Goldman Sachs profit nearly halves in second quarter

Goldman Sachs Group Inc on Monday reported a drop in second-quarter profit as dealmaking slumped, weakening the Wall Street giant's investment banking business. The bank reported profit of $2.8 billion, or $7.73 per share, for the quarter ended June 30 compared to $5.3 billion, or $15.02 per share, a year earlier.

Goldman Sachs Group Inc on Monday reported a drop in second-quarter profit as dealmaking slumped, weakening the Wall Street giant's investment banking business.

The bank reported a profit of $2.8 billion, or $7.73 per share, for the quarter that ended June 30 compared to $5.3 billion, or $15.02 per share, a year earlier. Investment banking was weighed down by a plunge in underwriting activity and deals, which were stalled by a risk-averse sentiment that has swept across global markets.

However, faced with uncertainty due to an aggressive Federal Reserve looking to curb inflation and the Ukraine war, clients looked to rebalance their portfolios, boosting trading activity. Net revenue was $11.86 billion for the second quarter, 23% lower than a year earlier.