3 months ago
Key Takeaways
- Goldman Sachs' second-quarter profit much than doubled year-over-year arsenic gross from finance banking fees and plus guidance surged.
- The banking giant's results came successful higher than analysts expected, joining different banks for illustration Wells Fargo, JPMorgan Chase, and Citigroup successful beating Q2 estimates.
- Goldman besides announced plans to raise its dividend to $3 per share, up from $2.75 per stock previously.
Goldman Sachs' (GS) efforts to refocus connected its Wall Street operations is paying off, arsenic second-quarter finance banking gross jumped complete 20% from a twelvemonth ago, helping profits much than double.
The slope reported second-quarter profit of $3.04 billion, 150% higher than past twelvemonth and conscionable supra nan $2.99 cardinal analysts had expected. Goldman reported earnings per stock (EPS) of $8.62, supra nan $8.42-per-share statement estimate of analysts compiled by Visible Alpha.
Net liking income (NII) roseate 33% from past twelvemonth to $2.24 billion, good supra analysts' expectations of $1.66 billion. The jump successful NII helped thrust total revenue up 17% to $12.73 billion, supra nan $12.42 cardinal estimate.
Investment Banking, Higher NII Boost Goldman's Results
Similar to nan first 4th of 2024, Goldman's results were boosted by higher gross from finance banking and wealthiness guidance operations. Goldman has been focusing connected its Wall Street operations aft stepping backmost from its outreach into user lending past year.
Unlike its banking colleagues JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC), which reported second-quarter net past Friday, Goldman recorded higher nett liking income than nan erstwhile quarter.
Analysts person said that banks' NII could autumn complete nan adjacent fiscal twelvemonth aliases 2 if nan Federal Reserve cuts liking rates, which it's expected to do astatine slightest erstwhile later this year.
“We are pleased pinch our coagulated 2nd 4th results and our wide capacity successful nan first half of nan year, reflecting beardown year-on-year maturation successful some Global Banking & Markets and Asset & Wealth Management," Goldman Chief Executive Officer (CEO) David Solomon said.
The institution besides announced plans to raise its quarterly dividend by 9% to $3.00 per share, up from $2.75 previously.
Goldman shares roseate little than 1% to $483.80 arsenic of 10:15 a.m. ET Monday. They are up astir 25% since nan commencement of nan year.
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