Goldman traders are on pace for a record year. Goldman Sachs' dealmaking prowess may grab all the glory, but the biggest driver of growth last quarter came from the daily grind of equities trading. Sure, Goldman and the other top Wall Street banks were able to cash in on all the market volatility lately. Many are even on track for their best year ever when it comes to trading revenue. But Goldman, in particular, has put itself in a position to meet the moment through years of investment and a strategy shift within its Global Banking & Markets group, which includes investment banking, equities, fixed income, currency, and commodities (FICC).
The firm has made a concerted effort to get big clients that come in through the door for investment banking or wealth management to use its equities services and vice versa. Just look at how the bank crushed last quarter's earnings report. Revenue from Goldman's equities business handily topped estimates, surging 72% to a record $7.42 billion in the second quarter. Investment banking revenue rose 55% to a much-better-than-expected $3.4 billion, which included fees from SpaceX's IPO and $25 billion bond sale during the quarter. It also includes the money earned from co-leading Alphabet's massive $85 billion equity raise, which was announced in June. FICC revenue also beat, rising 32% to $4.6 billion. Global Banking & Markets is Goldman's largest division, garnering $15.5 billion in revenue last quarter, or over 75% of the bank's total revenue.
