Goldman Sachs Group Inc reported a 40 per cent slump in bond trading revenue, mirroring a broader weakness in trading activity that has plagued big US banks in the latest quarter.

Goldman’s revenue from trading fixed income, currency and commodities fell to $1.16 billion from $1.93 billion. Trading surged a year-ago around the Brexit vote.

The fifth largest US bank by assets is typically more reliant on bond trading revenue than its peers. That helped the bank earn big profits leading into the 2007-2008 financial crisis, but regulations have crimped that business.

The Wall Street bank’s net income applicable to common shareholders was nearly flat at $1.63 billion in the second quarter ended June 30.

Earnings per share, however, rose to $3.95 as number of shares outstanding decreased nearly six per cent. It topped analysts’ average estimate of $3.39 per share.

Total revenue, including net interest income, fell 0.6 per cent to $7.89 billion.

Goldman’s operating expenses fell about two per cent to $5.38 billion.

The lender’s return on equity was 8.7 per cent. Analysts typically like to see a bank produce returns of at least 10 per cent to meet its cost of capital. Goldman has been working to cut its reliance on trading and shift to more stable businesses like investment management. That division generated revenue of $1.53 billion, up 13 per cent from the year-ago quarter.

The bank has also pushed into consumer lending, launching an online platform called Marcus in 2016. Shares of Goldman, a Dow component, fell 0.6 per cent in premarket trading.