Goldman Overcomes 'Choppy' Quarter

The finance chief isn't worried about the economy.
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Goldman Sachs (GS) - Get Report has its eye fixed on global domination.

Revenue from international business represented 52% of the New York-based financial behemoth's net revenue in the second quarter, CFO David Viniar said Thursday on an earnings call.

The financial institution has been involved in several major merger and acquisition deals abroad, including Italian energy company



bid to acquire Spanish energy shop




Such deals helped Goldman post solid second-quarter earnings. But Viniar cited "choppy conditions" for slightly uneven performances elsewhere.

Goldman posted a profit of $2.33 billion, or $4.93 a share, up 1% from the year-ago quarter and ahead of Thomson First Call earnings estimates of $4.79 a share, while total net revenue slipped 1% to $10.18 billion.

Goldman's asset management business recorded fees of $1.04 billion, up 28% from a year ago. But net revenues in trading and principal investments accounted for revenues of $6.65 billion, down 6% compared to a year ago and down 29% compared to last quarter.

Despite compression in brokerage commissions that has seen a number of brokerages shuttered, Goldman saw its brokerage and clearing fees total $638 million, up 35% from a year ago and 16% from the prior quarter.

Viniar attributed the upswing in brokerage fees to stronger volume.

From a macroeconomic standpoint, Goldman's chief finance officer was sanguine about the overall market outlook as interest rates pick up.

"By historical standards, interest rates are still pretty low," he notes, adding that the firm does not see big pickup in inflation and still believes available liquidity is a big driver for the market.

Still, shares of Goldman were down around 3% in afternoon trading.