GOLDMAN Sachs's profit fell 12% in the second quarter due to losses on some equity investments and a slowdown in dealmaking activity.
The biggest US investment bank also said on Tuesday that it was cutting more costs to bolster its bottom line. Goldman cut 100 jobs during the second quarter and trimmed other expenses, including market development, occupancy and professional fees.
Goldman earned $927m, or $1,78 per share, in the quarter, down from $1,052bn, or $1,85 per share, a year earlier. Analysts' average forecast was $1,16 per share, according to Thomson Reuters I/B/E/S.
Goldman's investment in Industrial and Commercial Bank of China resulted in a $194m loss during the quarter. Other public equity investments lost $112m, and overall its lending and investing division reported an 81% decline in net revenue, to $203m from more than $1bn a year earlier.
The investment bank's total net revenue fell 9% to $6,6bn and operating expenses were down 8% to $5,2bn.