That compared to $ 2.75 billion, or $ 5.94 per share, a year earlier, when the Wall Street bank recorded its best quarterly profit in five years.
Revenue for the quarter came in at $ 6.34 billion, against the comparable year-ago figure of $ 10.62 billion.
Analysts expected the banking giant to post earnings per share of $ 2.45 on revenue of $ 6.73 billion, according to a Thomson Reuters consensus estimate.
“The operating environment this quarter presented a broad range of challenges, resulting in headwinds across virtually every one of our businesses,” Lloyd Blankfein, chairman and CEO, said in a statement.
As with other banks, Goldman’s trading revenue was hit by sliding commodity and oil prices, worries about the Chinese economy and uncertainty about U.S. interest rates.
Revenue from trading bonds, currencies and commodities (FICC) fell about 47 percent to $ 1.66 billion, accounting for 26.2 percent of total revenue in the quarter — a far cry from the 40 percent the business regularly contributed before the financial crisis.
Goldman’s traditional rival, Morgan Stanley, reported on Monday a 54 percent drop in adjusted revenue from fixed income and commodities trading and a similar drop in net profit.
Goldman shares have been under pressure in 2016, falling nearly 12 percent year to date. The stock is also the greatest laggard among Dow components for the year, and has contributed just a 14-point gain to the blue-chips index.
Goldman Sachs in 2016
— CNBC’s Matthew J. Belvedere and Reuters contributed to this report.
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