PROFIT more than doubled at Goldman Sachs in the second quarter as the investment banking giant capitalised on the long-awaited recovery in dealmaking.

In three months to June, profit at Goldman Sachs hit $3bn, up from $1.2bn last year. The bank's revenue rose 17 per cent in the same period to $12.7bn.

The largest contribution came from investment banking, where revenue rose 21 per cent on the back of a recovery in leveraged finance and a rebound in initial public offerings (IPOs). The bank also noted that its fees backlog "increased significantly compared with the end of the first quarter of 2024".

Of all the major US banks, Goldman

Sachs is the most heavily dependent on investment banking revenue and was hit extremely hard by the recent dealmaking downturn.

Other major US banks have already posted substantial increases in revenue in recent months, with JP Morgan reporting that revenue from investment banking rose by half compared to last year while Citi notched a 60 per cent increase.

(c) 2024 City A.M., source Newspaper