Goldman Sachs Group Inc's
By The Numbers: The bank issued earnings of $3.08 - down 60% year-over-year - missing the $3.18 Street estimate, on revenues of $10.90 billion, ahead of the $10.84 billion consensus, according to .
Goldman's profit dropped by 60% in the second quarter, missing estimates, primarily due to the bank's retrenchment from consumer businesses and declining real estate investments, according to Reuters.
On its earnings call, considering the backdrop of a decline in investment banking (IB), CEO David Solomon described it as performing at its lowest level in almost a decade, though he mentioned that IB and mergers and acquisitions dialog are showing signs of recovery.
Goldman recorded $1.4 billion in write-downs in the second quarter tied to its GreenSky fintech business, and to consumer and business real estate investments, with Solomon noting that the current economic cycle presented challenges for the bank.
"This is obviously a tough quarter," Solomon said during the call. However, optimism followed with the CEO saying, "the environment feels better," with regard to the bank's performance in June.
Contrasting Goldman's narrative, other banks like JPMorgan Chase & Co
Goldman also began reducing headcount, trimming 2% from the previous quarter, according to Reuters, a trend that could continue if revenues don't start trickling back.
Despite the slump, Goldman's message remained fundamentally optimistic.
Solomon underscored his confidence in the bank's strategic decisions and highlighted green shoots in the capital markets.
GS Price action: Shares of Goldman Sachs are trading 1.54% higher to $342.57.