Goldman Sachs reported a higher second-quarter profit on Tuesday, as it benefited from a sharp decline in expenses and more activity in some parts of the fixed-income markets, but most of its businesses came under pressure.
Reuters reports that in response to a "challenging backdrop" for revenue, the Wall Street bank embarked on a cost-cutting plan in the first half of the year that will save $700m a year, Chief Financial Officer Harvey Schwartz said on a conference call.
The Wall Street bank's profit rose 78%, easily beating subdued analyst expectations, with higher revenue in fixed income, currency and commodities trading, as well as debt underwriting, compared with a year ago.
But overall revenue declined 13% as all of its other businesses reported weaker results. Goldman's profit was buoyed by cost cuts and the fact that it had a large legal provision in the second quarter of 2015.
To access the complete Reuters article hit the link below: