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Goldman Sachs (GS) on Tuesday released second quarter results that far exceeded Wall Street expectations, thanks to strength in investment banking.
Here are the key figures compared to expectations:
Adjusted earnings per share (EPS): $ 15.02 per share versus an estimate of $ 10.15
Returned: $ 15.39 billion versus an estimate of $ 12.43 billion
Goldman’s investment banking business posted its second best quarter ever at $ 3.61 billion, after a record first quarter. Investment banking revenues represented 24% of total revenues for the quarter. Goldman noted that its investment banking backlog “increased significantly from the end of 2020, ending the quarter at a record high.”
Citing “continued progress on our strategic priorities,” CEO David Solomon said that “as the economic recovery is underway, our customers and communities continue to face challenges in overcoming the pandemic.”
The banking giant has once again topped industry rankings for mergers, IPOs and initial public offerings (IPOs), which have seen a tear in a market perched at record highs.
However, global markets fell 32% from a year ago to $ 4.90 billion, as income from fixed income, currencies and commodities (FICC) fell 45% from a year ago to $ 2.32 billion, while equity income fell 12% to $ 2.58 billion from the same quarter of 2020.
Elsewhere, income from asset management more than doubled from a year ago to $ 5.13 billion, thanks to “significantly higher” net income from equity investments. Asset management revenues represented 33% of total revenues for the quarter.
Revenues from consumer and wealth management activities increased 28% from a year ago to $ 1.75 billion, but were flat from the previous quarter.
Goldman shares were last trading down 0.53%, or down $ 2, near $ 378.50.
Julia La Roche is a correspondent for Yahoo Finance. Follow her on Twitter.
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