Investment bank Goldman Sachs Group today said quarterly profit rose 71 per cent as its fixed-income unit produced strong results.
The New York-based company said second-quarter net income rose to $1.19 billion, or $2.31 per share, from $695 million, or $1.36 per share, a year earlier.
Earnings surpassed the average estimate of $1.95 per share among analysts polled by Reuters Estimates.
Goldman Sachs said second-quarter total net revenue rose to $7.68 billion from $5.99 billion a year earlier but was down from $7.91 billion in the first quarter of this year.
Revenue from trading and principal investments, including trades that Goldman Sachs makes with its own capital, was $3.63 billion, up 35 per cent from a year earlier but down 12 per cent from the first quarter of this year.
Revenue from the fixed income, currency and commodities unit, which has lead the firm's revenue growth in recent years, rose 15 percent from a year earlier to $1.89 billion but declined 10 per cent from the first quarter of 2004.
Net revenue in equities trading totaled $351 million, down 21 per cent from a year earlier and down 63 per cent from the first quarter of this year.
Like other investment banks, Goldman Sachs has worked to maintain revenue at a time of rising interest rates. As borrowing costs go up, companies are raising less money through debt sales and fewer mortgage-backed securities are being sold.