Goldman Sachs showed it had sidestepped the worst of the credit squeeze once again Tuesday, using its broad business base to offset declines in revenue in some areas and benefiting from the capital-raising efforts of its rivals.

The bank said it had earned $2.09bn in the second quarter, a 10 per cent drop from last year but still well ahead of expectations. The bank reported $616m in equity underwriting revenues, its second best quarter yet, reflecting heavy involvement in capital-raising efforts by other financial institutions seeking to offset credit losses.