Goldman Sachs, earnings run over 3 billion
Results exceeded estimates in the quarter thanks to trading and fixed income. Revenues up 17% to EUR 12.731bn, coupon increases
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Key points
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In the second quarter Goldman Sachs saw profits nearly triple, exceeding analysts' forecasts, thanks in particular to better-than-expected results from its fixed income trading business. The banking group also decided to increase quarterly coupons by 9% to $3 per share, starting in the third quarter. The company ended the second quarter with a profit of $3.04 billion ($7.18 billion in the six-month period), or $8.73 per share ($20.21 in the six-month period), compared to $1.21 billion, $3.09 per share, in the same period last year.
revenues up 17%
.Revenues grew by 17% to EUR 12.731 billion (EUR 26.94 billion for the six-month period). Analysts had forecast earnings of $8.35 per share on revenues of $12.35 billion. "We are pleased with the solid second quarter results and our overall performance in the first half of the year, reflecting strong year-over-year growth in Global Banking & Markets and Asset & Wealth Management," said CEO David Solomon, noting that "our One Goldman Sachs operating approach allows us to bring the entire business to our clients in an improving, but still complex, environment."
The numbers
.Looking at capital ratios, return on equity was 10.9% for the quarter and 12.8% for the six months, while Rote was 11.6% for the three months and 13.8% for the six months. Book value increased by 1.9% to $327.13. Aus (assets under supervision) in the quarter grew by USD 86 billion to a record USD 2,930 billion. In more detail, the Global Banking & Markets area reported revenues of 8.18 billion (+14% compared to the same period in 2023), with equity revenues at 3.17 billion (+7%) and fees generated by investment banking up 21% to 1.73 billion mainly due to debt underwriting.
The Asset & Wealth Management division reported revenues of EUR 3.88bn (+27%) and the Platform Solutions division generated revenues of EUR 669m (+2%). Provisions for possible credit losses amounted to EUR 282m (EUR 615m in the same period last year and EUR 318m in the first quarter), while operating expenses were largely unchanged at EUR 8.53bn, with an efficiency rate of 63.8% in the first half of the year (73.3% in the same period of 2023).
