Goldman Sachs posted a 5 percent rise in quarterly profit, spurred by higher revenue from stock underwriting and a smaller decline in fixed-income trading than many on Wall Street had predicted.
The bank's stock was up nearly 1 percent on the New York Stock Exchange.
Goldman posted net income for shareholders of $1.95 billion, or $4.10 per share, in the three months ended June 30, up from $1.86 billion or $3.70 per share in the same period a year earlier.
Analysts on average had expected earnings of $3.05 per share, according to Thomson Reuters I/B/E/S.
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Institutional investors have been shying away from the bond market because of a lack of strong opinions about interest rates and currency moves.
"The sustainability of that trend is in question,'' said Brian Kleinhanzl, a research analyst at Keefe, Bruyette & Woods who rates Goldman a ``market perform.''
JPMorgan said on Tuesday that the June improvement in bond trading has not carried over to July.