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 The bank said it set aside $1.45 billion for mortgage-related legal
costs and regulatory matters, up from $284 million a year earlier,
reducing earnings by $2.77 per share.
As with its competitors, Goldman's trading business - long a
strength for the Wall Street bank - also came under pressure in the
quarter amid worries about Greece and China.
Goldman's net revenue from trading fixed-income securities,
currencies and commodities fell 28 percent to $1.60 billion.
The business, which once contributed about 40 percent of Goldman's
revenue, has been under pressure since the financial crisis as new
rules discourage banks from trading off their own balance sheet and
regulators demand that banks boost capital.
Other banks have shifted away from trading to focus on less-volatile
businesses like wealth management, while Goldman executives have
stressed the bank's commitment to trading.
Still, the business accounted for only about 18 percent of revenue
in the quarter.
Goldman's net profit attributable to shareholders more than halved
to $916 million, or $1.98 per share, in the three months to June 30,
from $1.95 billion, or $4.10 per share, a year earlier.
Analysts on average had expected earnings of $3.89 per share,
according to Thomson Reuters I/B/E/S. It was not immediately clear
if the reported figures were comparable.
The bank, whose shares were down 1 percent in premarket trading,
said revenue fell nearly 1 percent to $9.07 billion.
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"While uncertainty in the EU weighed on investors' level of
conviction, many of our businesses continued to benefit from
generally improving economic conditions," Chief Executive Lloyd
Blankfein said in a statement.
Revenue from equity underwriting rose 9 percent to $595 million,
while investment banking revenue overall, which includes M&A, debt
underwriting and stock underwriting, rose 13 percent to $2.02
billion.
Goldman ranked No. 1 in global mergers and acquisitions as well as
in equity underwriting in the first half of 2015, according to
Thomson Reuters data.
(Reporting by Olivia Oran in New York; Editing by Ted Kerr)
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