Goldman Sachs Group Inc
Investment banking revenue also dropped as equity underwriting and merger advisory activity slowed.
The results show the pressure investment banks face as trading volume drops globally and merger activity slows. Goldman cut 100 jobs during the second quarter and trimmed other costs, including compensation and professional fees.
Its investing and lending division suffered $194 million of losses on its investment in shares of Industrial and Commercial Bank of China Ltd (ICBC), and $112 million of losses from other stocks.
Goldman's earnings per share still easily beat analyst expectations, in part because it spent $1.5 billion buying back 14.3 million of its shares during the quarter.
The bank earned $927 million, or $1.78 per share, down 12% from $1.052 billion, or $1.85 per share, a year earlier. Analysts' average forecast was $1.16 per share.
Goldman shares were up 2% in pre-market trading at $99.65.
"I think a lot of the cost-cutting measures are starting to pay off to the bottom line," said Edward Deicke, a registered representative at JHS Capital Advisors.
Goldman's operating expenses fell 8% to $5.2 billion. But revenue fell a sharper 9% to $6.6 billion.
Overall, its lending and investing division reported an 81% decline in net revenue, to $203 million from more than $1 billion a year earlier.
