It was a tough act for Goldman Sachs to follow: U.S. rivals Bank of America and JP Morgan had already announced their strong own financial results, and analysts were already expecting more of the same from Goldman.
And yet the world’s most famous investment bank still managed to surprise, reporting a 50-percent profit increase to $2.09 billion that sent its share price up 2.5 percent on opening.
“We are seeing strong performance in all areas,” said chief executive Lloyd Blankfein.
Compare that to Europe’s largest investment bank. When Deutsche Bank reports its own results later this month, analysts widely expect to see a significant decline in profits and, unlike Goldman Sachs, a decline in securities trading revenues by a third.
If that wasn’t clear before, it is now: A gap is widening between American and European financial institutions.