Goldman Sachs’ profits rebound - increasing by 78%

The financial giant has beaten market expectations following a terrible first quarter...

Goldman Sachs’ profits rebound - increasing by 78%

Richard Drew / AP

Goldman Sachs’ quarterly results show a turnaround - profits increased by 78% as the firm bounced back form its worst quarter of the past five years.

In the wake of the poor previous quarter, the company reduced its headcount by hundreds and cut its pool for bonuses.

The bank's net income for the three months was $1.82bn - up from $1.05bn 12 months ago. Income in these three months last year was hit by the impact of a $1.45bn fine for the mis-selling of mortgage-backed securities.

Lloyd Blankfein, Goldman Sachs' chairman and chief executive commented on the results:

"Despite the uncertainty created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently," he said.

After the results were made public, the firm's shares fell by 1.3% - they are down by 9% so far this year.

Goldman has reduced its pool of money for salaries and bonuses from $3.8bn to $3.3bn.

"During the quarter, the operating environment for equities was impacted by lower levels of client activity, lower market volumes and a decline in volatility compared with the first quarter of 2016," the company said in a statement.