Bruising setback for Goldman Sachs as profits sink to a three-year low as deals dry up
Goldman Sachs has clocked up its worst performance in three years in a bruising setback for the Wall Street giant.
The bank said profits fell 62 per cent to £835million in the second quarter of the year, the lowest since the same period of 2020.
Like other Wall Street investment banks, Goldman has been hit by a dearth of dealmaking and stock market floats amid concerns over the global economy.
But chief executive David Solomon said he has seen signs of improvement.
Slump: Goldman Sachs said profits fell 62% to £835m in the second quarter of the year – the lowest amount since the same period of 2020
‘It definitely feels better over the course of the last six, eight weeks,’ Solomon told analysts on a conference call.
‘This is obviously a tough quarter,’ but, he added, ‘the environment feels better’.
He said that activity is picking up and clients are once again in discussions about mergers and acquisitions.
But he warned the economic backdrop remained challenging as loans to households and business sour.
‘This moment in the economic cycle creates meaningful headwinds for Goldman Sachs,’ Solomon said.
‘We are making tough decisions that are driving the strategic evolution of the firm.
‘Given both these factors, it should come as no surprise that we’re going to a period of lower results.’