Goldman Sachs Group Inc. reported net income of $1.19 billion and diluted earnings per share of $2.31 for its fiscal second quarter, ended May 28, according to the firm's earning statement, released today. That compares with net income of $695 million and diluted earnings per share of $1.36 a year earlier. Asset management net revenues for the quarter were $601 million, up 49% from a year earlier, primarily because of more allocations from existing clients. During the quarter, assets under management increased to $415 billion, reflecting net asset inflows of $9 billion, mainly in alternative investments, equity and fixed income.
Morgan Stanley also reported a healthy second quarter, with net income of $1.22 billion, or $1.10 a share, for the three months ended May 31. That compares with $599 million, or 55 cents a share, a year earlier. The increase was due to strong performance across all businesses, especially the fixed income, equities and investment banking businesses in the institutional securities segment, according to its earning report. The company reported that net revenues from its investment management segment was $690 million as of May 31, up 24% from the previous year. It had $500 billion in consolidated assets under management at the end of the quarter, up 19% from the same period last year.