Goldman's income jumps but still misses estimates

By the Associated Press | July 19, 2011 | 8:44 AM EDT

NEW YORK (AP) — Goldman Sachs Group Inc. says it earned $1.05 billion in the second quarter, more than double compared with the same period a year ago.

The results fell short of analysts' expectations. The investment bank's stock fell 3 percent in pre-market trading.

The bank cut costs as its revenues fell 18 percent.

Goldman Sachs set aside $3.2 billion for employee pay, 16 percent less than a year ago. Other expenses were down 18 percent, but that was partly because Goldman had to pay a record fine to regulators last year to settle charges that it misled investors about mortgage securities.

Per-share earnings were $1.85. That was more than double the 78 cents from a year ago but below analysts' forecasts of $2.35.

Revenue of $7.3 billion also missed analysts' expectations.