The Goldman Sachs Group Inc. (GS) reported second-quarter results before markets opened Tuesday morning that topped estimates. The investment bank reported diluted quarterly earnings per share (EPS) of $3.95 on revenue of $7.89 billion. In the same period a year ago, the bank reported EPS of $3.72 on revenue of $7.93 billion. Second-quarter results topped the consensus estimates for EPS of $3.39 on revenue of $7.52 billion.

Trading revenue slid 17% to $3.05 billion from $3.68 billion, while fixed-income revenues rose by 42% to $1.57 billion. Net revenue in fixed income, currency and commodities client execution (bond trading) were $1.16 billion for the second quarter of 2017, 40% lower than the second quarter of 2016, because of lower net revenue in interest-rate products, commodities, credit products and currencies, partially offset by higher net revenue in mortgages.

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Goldman noted that the group operated in a challenging environment of low volatility, low client activity, and "generally difficult" market making conditions.

Book value per common share rose by 6.1% year over year to $187.32.

In the bank's investment management group, assets under supervision decreased by $33 billion from a year ago to $1.4 trillion. Long-term assets under supervision increased by $42 billion, including net market appreciation of $24 billion, primarily in equity and fixed-income assets, and net inflows of $17 billion, reflecting inflows in fixed income and equity assets. Liquidity products decreased by $9 billion.

Investment banking revenue declined 3% to $1.73 billion, primarily because of a 6% drop in completed mergers and acquisitions.

Year-over-year operating expenses fell 2% in the first quarter, to $5.38 billion. Compensation expenses decreased 3% to $3.23 billion and non-compensation expenses were little changed at $2.15 billion.

During the quarter, Goldman repurchased 6.6 million shares of its common stock at an average cost per share of $221.92, for a total cost of $1.47 billion.

Bank Chief Executive Officer Lloyd Blankfein said:

A mixed operating environment persisted into the second quarter as conditions continued to support underwriting and M&A, while constraining certain market-making activity. Against that backdrop, we produced revenue growth and improved profitability for the first half of 2017, reflecting both the diversity and strength of our global businesses.

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The bank did not offer guidance in its press release, but the consensus estimates call for third-quarter EPS of $4.36 on revenue of $7.64 billion. The EPS estimate for the 2017 fiscal year is $18.53 on revenue of $31.09 billion.