Goldman Sachs has posted lower second-quarter earnings, hurt by its settlement of US Securities and Exchange Commission fraud charges and the UK tax on bank executive's bonuses.
Goldman, which this week resolved the SEC case by paying $550 million to settle, said earnings applicable to common shareholders fell to $453 million, or 78 cents a share.
A year earlier, the bank reported earnings to common shareholders of $2.7 billion, or $4.93 a share.
Weakness in its trading and investment banking divisions also weighed on earnings.
The fraud charges stemmed from Goldman's marketing and packaging of the Abacus collateralised debt obligation. The bank agreed to settle the case last Thursday.
Goldman said earnings were impacted by a $600 million expense related to the UK tax.
Goldman shares were down 2.1 per cent to $142.55 in premarket trade. US stock index futures extended declines after the Goldman results.
Reuters