A WEAKER deal making environment has nearly halved Wall Street investment bank Goldman Sachs' profits.

Net earnings dropped to $2.8bn (£2.4bn) in the three months to June, down 48 per cent from $5.3bn in the same period last year, Goldman said yesterday.

Investment banking revenues collapsed nearly 50 per cent to $1.8bn driven by businesses putting off listing and debt issuance plans amid concerns over the global economic downturn.

David Soloman, chairman and chief executive of Goldman Sachs, said: "Despite increased volatility and uncertainty, I remain confident in our ability to navigate the environment, dynamically manage our resources and drive long-term, accretive returns for shareholders."

Slim deal making conditions also whacked fellow lender Bank of America, with investment banking income dropping 47 per cent.

That knock fed a 34 per cent slide to $5.93bn in profits at the Wall Street firm.

The pair's shares rose at the open.

(c) 2022 City A.M., source Newspaper