REUTERS - Goldman Sachs Group Inc reported a lower-than-expected quarterly profit as gains in investment banking were offset by weak trading revenue.
Total revenue from trading fell 2.4 percent to $3.36 billion, the lowest in five quarters.
Revenue from fixed-income securities, currencies and commodities trading rose just 1.3 percent to $1.69 billion.
"The operating environment was mixed, with client activity challenged in certain market-making businesses...," Chief Executive Lloyd Blankfein said in a statement.
Goldman's trading results were in sharp contrast to those from JPMorgan Chase & Co and Bank of America, which reported a rise in trading revenue.
Shares of Goldman were down 3 percent in premarket trading.
Goldman has historically relied more on trading than other big banks, but has been trying to shift to stable businesses such as investment management.
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Earnings per share rose to $5.15 from $2.68. (https://bsmedia.business-standard.combit.ly/2nYyF63) Analysts on average had expected earnings of $5.31 per share, according to Thomson Reuters I/B/E/S.
Investment banking revenue, which includes M&A, debt underwriting and stock underwriting, rose 16.4 percent to $1.7 billion.
Total operating expenses rose 15.2 percent to $5.49 billion.
Morgan Stanley, Goldman's traditional rival, reports earnings on Wednesday.
(Reporting by Sruthi Shankar in Bengaluru and Olivia Oran in New York; Editing by Sriraj Kalluvila)