As per reports, Goldman Sachs Group, Inc. reported a profit drop of 47% in the second quarter, depicting the end of a pandemic-era boom in Wall Street deal activity. The bank earned $2.93 billion, down from $5.49 billion a year ago. Earnings per share of $7.73 exceeded the $6.56 a share estimate. Revenue dropped 23% to $11.86 billion but exceeded the $10.78 billion expected by analysts.
Quarter Highlights:
- The firm’s investment bankers took in $2.14 billion in fees, 41% lower than a year ago.
- Goldman’s trading revenue was $6.47 billion in the quarter, up by 32%.
- The firm earned $1.2 billion in fees from advising on mergers and acquisitions, down 5% from a year ago.
- Revenue in the consumer and wealth-management division that includes Goldman’s Marcus consumer bank and the team serving wealthy clients rose 25% to $2.18 billion, or about 18% of the firm’s second-quarter revenue.
- Compensation expenses dropped 30% to $3.7 billion. Total operating expenses were $7.65 billion, down 11% from the same period last year.
- The bank’s return on equity, a measure of how profitably it uses shareholders’ money, was 10.6% annually.
The Goldman Sachs Group, Inc. (GS) is one of the world’s leading investment bankers & also a securities and investment management firm that offers a wide range of financial services with a diversified client base. To learn more about The Goldman Sachs Group, Inc. (GS) and to continue to track its progress please visit the Vista Partners Goldman Sachs Group, Inc. (GS), Coverage Page.
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