Goldman Sachs reported a sharp drop in profit on Wednesday as dealmaking and trading, a core part of the mega bank's business, dry up. The Wall Street titan also felt the pain of a nearly $1 billion reduction in the value of its consumer and real estate businesses.

Goldman saw its investment banking revenue decline by about 20% in the second quarter of 2023, according to its latest earnings report, released Wednesday. Trading revenue also fell by about 12%. Overall, profit fell by 58% from a year ago, to $1.2 billion.

While Citigroup and Morgan Stanley also saw their profit decline, Goldman reported the largest drop of its peers.

The company brought in $3.08 per share in the second quarter, falling short of the $3.16 per share analysts had expected, according to FactSet. Goldman is the only large bank so far to miss on earnings per share estimates.

This marks the worst quarterly profits since early 2020, during the pandemic-induced recession. The poor report will likely increase scrutiny of CEO David Solomon who has been under pressure for overseeing the bank's shrinking consumer business.

"This quarter reflects continued strategic execution of our goals," Solomon said in a press release Wednesday morning. "I remain fully confident that continued execution will enable us to deliver on our through-the-cycle return targets and create significant value for shareholders."

Goldman Sachs stock was down around 1.7% in premarket trading.

The bank is expected to hold an earnings call at 9:30 a.m. ET on Wednesday.

This story is developing and will be updated.