(Reuters) – Goldman Sachs Group Inc reported a better-than-expected quarterly profit on Tuesday and named bank insider David Solomon to replace long-time Chief Executive Lloyd Blankfein.
Solomon’s appointment comes as Goldman Sachs tries to reinvent itself after market trends and regulations ate into profits from its once-lucrative trading business.
Blankfein will remain chairman until the end of the year, and Solomon, currently the bank’s chief operating officer, will take the helm at the start of October.
Net income at the fifth largest U.S. bank rose 44 percent in the second quarter ended June 30, helped by strength in its investment banking and bond trading businesses.
Goldman’s performance in fixed income, commodities and currency trading contrasted with an exceptionally poor quarter a year ago, which saw the bank post the weakest commodities results in its history.
In equity trading, however, Goldman lagged peers such as JPMorgan Chase & Co and Citigroup Inc, both of which reported a rise in revenue from the business.
In its second-quarter results, JPMorgan identified strength in equity derivatives, while Goldman said on Tuesday its derivatives revenue fell.
Overall trading revenue, the biggest contributor to Goldman’s total revenue, rose 17 percent to $3.57 billion.
Total non-interest revenue rose 18.3 percent to $8.40 billion, with investment banking revenue rising 18 percent.
On a per share basis, the bank earned $5.98, comfortably topping the average estimate of $4.46 per share, according to Thomson Reuters I/B/E/S data.
(Reporting By Aparajita Saxena in Bengaluru and Matthew Scuffham in Toronto; Editing by Saumyadeb Chakrabarty and Sweta Singh)