Goldman Sachs’ profit more than doubled in the second quarter, bolstered by higher fees from debt underwriting

Goldman Sachs’ profits more than doubled in the second quarter, thanks to higher debt-underwriting fees and strong performance in its bond-trading business.

The bank reported Monday profit of $3.04 billion, or $8.62 per share, for the three months ended June 30, down from $1.22 billion, or $3.08 per share, a year earlier.

“We saw strong year-over-year growth in both our Global Banking and Markets and Asset and Wealth Management segments and are pleased with our strong second quarter performance and overall performance for the first half of the year,” CEO David Solomon said in a statement.

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The bank’s profits in the same period last year were hit by impairment charges related to GreenSky, its former fintech business, which Goldman has since sold.

The resilience of the U.S. economy has given corporate executives the confidence to pursue acquisitions, debt sales and public offerings.

Goldman’s investment banking fees rose 21% in the quarter to $1.73 billion, helped by higher fees from debt and equity underwriting and advising on mergers and acquisitions.

Fixed income, currencies and commodities (FICC) trading revenues increased 17% due to strength in FICC financing, which provides loans to institutional investors. Equities trading revenues increased 7%.

JPMorgan Chase & Co. and Jefferies Financial Inc. also posted strong results in their investment-banking divisions, whose global revenue rose 17 percent to $41.6 billion in the first half of the year, according to Dealogic data.

After a failed push into consumer banking, Goldman refocused on its traditional core businesses of investment banking and trading.

Investors have cheered the move, sending the Wall Street giant’s shares up 24.4% so far this year, compared with an 11.6% rise for rival Morgan Stanley and 20.5% for JPMorgan Chase.

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Goldman’s asset and wealth management division, which manages money for wealthy individuals and institutions, reported a 27% increase in second-quarter revenue.

The bank has $2.93 trillion in assets under management and in May signed a deal to manage UPS Inc.’s $43.4 billion pension fund portfolio.

Platform Solutions, part of Goldman’s consumer business, reported a 2% increase in revenue.

The bank’s second-quarter allowance for credit losses was $282 million, down from $615 million a year earlier.

credit card

Goldman plans to phase out its credit card partnership with General Motors Co., while a similar partnership with tech giant Apple faces an uncertain future.

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General Motors Co is in talks with Barclays to replace Goldman Sachs, a source familiar with the matter told Reuters in April.

Credit cards were a key aspect of Goldman’s consumer strategy, but the company decided to exit consumer banking after big losses.

The Federal Reserve has signaled in its annual stress tests that credit cards could pose a headache for banks, and the potential losses on Goldman’s credit-card loans are among the worst-case scenarios the central bank has envisioned.

Still, Goldman raised its dividend to $3 a share from $2.75 a share previously.