NEW YORK (AP) — Goldman Sachs says its second-quarter profit slumped by half on legal costs.
Net income fell to $916 million from $1.95 billion a year earlier, the bank said Thursday. That was after paying dividends on preferred stock.
On a per-share basis, quarterly earnings were $1.98. The cost of provisions for mortgage-related litigation and “regulatory matters” crimped earnings per share by $2.77.
Overall, revenue slipped 1 percent to $9.07 billion from $9.13 billion. That was better than the $8.75 billion analysts had expected, according to the data provider FactSet.
The large legal charge marred what would otherwise have been a relatively good quarter for the bank.
Goldman benefited from a surge in corporate deal-making as the bank earned more in fees from advising corporate clients. Revenue from investment banking jumped 13 percent to $2.02 billion. Deals have surged this year as companies take advantage of low interest rates to finance acquisitions.
Revenue at the bank’s investment management arm also rose, climbing 14 percent from a year earlier.
Goldman’s stock fell $1.76, or 0.8 percent, to $211 in premarket trading. The stock has climbed 10 percent this year, compared with a 6.3 percent gain for the KBW bank index.
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