Goldman Sachs named David Solomon its new chief executive Tuesday, implementing a much-telegraphed succession plan as it expands beyond its Wall Street roots to the broader consumer market.
The prestigious investment bank said Solomon will assume the top executive job on Oct. 1, succeeding longtime chief Lloyd Blankfein, who will remain as chairman through the end of the year. Solomon will then succeed Blankfein as chairman.
Meanwhile, Goldman Sachs said Tuesday its profits jumped 44 percent in the second quarter compared with a year ago, driven by the investment bank's core franchises: advising companies on mergers, acquisitions and other deals, and its trading business.
The New York-based bank said earnings reached $2.35 billion in the second quarter, up 44 percent from a profit of $1.63 billion from a year earlier. On a per-share basis, Goldman earned $5.98 a share, compared with $3.95 a share a year earlier, beating analysts' forecasts of $4.65 a share.
Nearly all of Goldman's businesses saw double-digit growth in the quarter. Trading was particularly strong. Goldman's institutional client services division, which contains the firm's trading operations, posted net revenues of $3.57 billion in the quarter, up 17 percent from a year earlier.