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Goldman's i-banking revenues fall YOY in Q2

Goldman SachsGroup Inc. reported second-quarter net earnings applicable tocommon shareholders of $1.63 billion, or $3.72 per common share, up from $916million, or $1.98 per common share, in the prior-year quarter.

The company saw a 78% year-over-year improvement in netearnings applicable to common shareholders in the second quarter. Growth inearnings per common share in the second quarter was 88% year over year.

The S&P Capital IQ consensus GAAP EPS estimate for thequarter was $3.03.

Net revenues, including net interest income, fell to $7.93billion in the second quarter from $9.07 billion in the year-ago period.

Investment banking revenues dropped to $1.79 billion in thesecond quarter from $2.02 billion in the prior-year period. Financial advisorynet revenues declined to $794 million from $821 million on a drop inindustrywide completed M&As. Net underwriting revenues stood at $993million, down from $1.20 billion, on lower net revenues in equity underwritingdue to a decline in industry activity.

Second-quarter net institutional client services revenuesincreased year over year to $3.68 billion from $3.60 billion. Fixed income,currency and commodities client execution revenues jumped to $1.93 billion from$1.60 billion due to due to higher net revenues in currencies and creditproducts, as well as higher net revenues in interest rate products andcommodities, partially countered by lower net revenues in mortgages.

Significantly lower net revenues in equities clientexecution caused by lower net revenues in both cash products and derivatives inAsia led to net revenues in equities dropping to $1.75 billion from $2.0billion.

Net investing and lending revenues fell to $1.11 billionfrom $1.80 billion. The decline was primarily attributed to a significantdecrease in net gains from investments in both private and public equities.

Net revenues in investment management plunged to $1.35billion from $1.65 billion, primarily reflecting significantly lower incentivefees.

Operating expenses totaled $5.47 billion in the secondquarter, down from $7.34 billion in the year-ago period.

Net provisions for litigation and regulatory proceedings forthe second quarter were $126 million, compared with $1.45 billion for thesecond quarter of 2015.

During the second quarter, Goldman Sachs repurchased 11.1million common shares at an average cost per share of $156.60, for a total costof $1.74 billion.