Goldman Sachs Group 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% to $3.36 billion, the lowest in five quarters.
Revenue from fixed-income securities, currencies and commodities trading rose just 1.3% 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.
Shares of Goldman were down 3% 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.
Earnings per share rose to $5.15 from $2.68.
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% to $1.7 billion.
Total operating expenses rose 15.2% to $5.49 billion.