Goldman Sachs recorded better-than expected second quarter financial results amid major change in leadership.
The Wall Street bank said group profit grew 40% to $2.6 billion and revenue surged 19% to $9.40 billion in the June quarter, compared to the second quarter of 2017.
What’s more, revenue for the three months ending 30 June, was also the highest second quarter in nine years.
Goldman Sachs’ investment management division, which includes its private wealth and asset management businesses, saw second quarter revenue reach $1.84 billion, 20% higher than the prior year.
The increase was primarily due to higher incentive fees, higher transactions revenue, and slightly higher management fees.
During the quarter, total assets under supervision within the unit increased $15 billion to $1.51 trillion.
Long-term assets, Goldman Sachs said, increased $5 billion, due to net inflows of $8 billion, spread across all asset classes.
These net inflows were partially offset by net market depreciation of $3 billion, reflecting depreciation in fixed income assets, partially offset by appreciation in equity assets. Liquidity products increased $10 billion.
Meanwhile, Goldman Sach's long time chief executive Lloyd Blankfein will retire on 30 September and step down as chairman of the board at the end of the year.
David Solomon has been appointed to succeed Blankfein in both roles.