The Goldman Sachs Group Inc. today reported net earnings for the second quarter of US$2.31 billion, on revenues of US$10.1 billion, more than doubling the year-ago revenues of US$4.81 billion.

Trading continues to dominate Goldman’s business. The firm reported that net revenues in Trading and Principal Investments were US$6.96 billion, up from US$2.81 billion in the second quarter of 2005 and essentially unchanged from the first quarter of 2006.

Including non-cash expenses, net earnings were US$2.31 billion and diluted earnings per common share were US$4.78 for the second quarter. These results compare with US$865 million, or $1.71 a share, a year earlier.

Excluding the non-cash expenses of US$138 million, annualized return on average tangible common shareholders’ equity was 40.8% and the annualized return on average common shareholders’ equity was 33.9% for the second quarter.

The firm reports that it ranked first worldwide in announced and completed mergers and acquisitions, equity and equity-related offerings, public common stock offerings and initial public offerings for the year-to-date.

Its Investment Banking division produced net revenues of US$1.53 billion, its second best quarter and its best quarterly performance in six years. Fixed Income, Currency and Commodities generated record quarterly net revenues of US$4.32 billion, 15% higher than the previous record, reflecting strong performance across all major businesses. Equities produced quarterly net revenues of US$2.35 billion, its second best quarter.

Asset Management recorded net revenues of US$954 million, its second best quarter and 38% higher than the second quarter of 2005. Assets under management increased to a record US$593 billion, 21% higher than a year ago, including net asset inflows of US$15 billion during the quarter.

Also, the Securities Services group produced record quarterly net revenues of US$656 million, 34% higher than the previous record.

“We are pleased with our very strong results in the second quarter and our record performance for the first half of the year,” said Lloyd Blankfein, president and chief operating officer. “We have continued to benefit from the strength, breadth and depth of our client franchise. Recent market volatility has served as a reminder of the vital importance of investor confidence to the smooth functioning of the global financial system, but we take comfort from the continuation of strong global economic growth.”