Goldman Sachs Group Inc. (NYSE: GS) reported second-quarter results before markets opened Tuesday. The investment bank and financial services giant posted diluted earnings per share (EPS) of $4.10 on revenue of $9.13 billion. In the same period a year ago, the bank reported EPS of $3.70 on revenue of $8.61 billion. Second-quarter results also compare to the consensus estimates for EPS of $3.05 on revenue of $7.41 billion.

Investment banking revenues rose 15% to $1.78 billion, with a 47% improvement in the bank’s equities underwriting group leading the way. Institutional client services revenues fell 11% to $3.83 billion, but Goldman was able to offset that drop by a 46% increase in investing and lending revenue to $2.07 billion and an 8% increase in investment management revenues to $1.44 billion.

The drop in institutional client services was attributed to declines in both currency and commodities trading. Revenue in credit products was also lower and the declines were only partially offset by higher revenues in mortgages and interest rate products. Goldman noted that fixed income, currency, and commodities trading “continued to operate in a challenging environment as market volatility and levels of activity generally remained low.”

Net earnings rose 5% from $1.86 billion in the year-ago quarter to $1.95 billion this year. Profits were essentially flat sequentially.

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Bank CEO Lloyd Blankfein said:

We are pleased with our results for the quarter in the context of mixed operating conditions during the period. This performance was driven by the diversity, strength and breadth of our global client franchise. Good client activity in Investment Banking and Investment Management as well as a better environment for our Investing & Lending activities helped offset less favorable conditions for Institutional Client Services.

Goldman increased its Basel III Tier 1 common ratio to 11.4% in the second quarter.

The bank did not offer guidance in its press release, but the consensus estimates call for third-quarter EPS of $3.02 on revenues of $7.41 billion. The EPS estimate for the full year is now $15.28, a drop of just two cents a share from the estimate at the end of the first quarter.

Shares traded about 2% higher in the premarket Tuesday to $170.24. The current 52-week range is $151.33 to $181.13. Thomson Reuters had a consensus analyst price target of around $173.60 before the results were announced.

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