Nidhish Waghmare
Goldman Sachs said on Monday that it topped profit and revenue estimates on better-than-expected fixed income results and smaller-than-expected loan loss provisions.
Financial performance of the company
According to the reports,
- Earnings: $8.62 per share vs $8.34 share LSEG estimate
- Revenue: $12.74 billion vs $12.46 billion estimate
Sachs said that second- quarter profit jumped 150% from a year earlier to $3.04 billion, or $8.62 a share; the bank’s results a year ago were hamstrung by write-downs tied to commercial real estate and the sale of a consumer business. Companies revenue rose a more modest 17% to $12.73 billion.
Another boost for Goldman came when the bank’s provision for credit losses in the quarter fell 54% to $ 282 million; that is greatly below the $43.4 million StreetAcclung estimate, thanks to the firm’s shrinking exposure to consumer loans.
Comparison with rivals
It has been said that Goldman’s business disappointed as compared to competitors; investment banking fees rose just 21% to $1.73 billion, slightly under the $1.8 billion StreetAccoung estimate. The source of the miss appeared to be lighter- than- expected advisory fees of $ 688 million, compared with the $757.3 million estimate.
On friday, both its rivals topped expectations thanks to surging investment banking fees and better-than- expected equities trading results.
It’s 21% increase in investment banking fees in the quarter compared with jumps of over 50% for both JPMorgan Chase and Citigroup. Additionally, Sach’s CFO Denis Coleman told reporters that the still had a No.1 market share for mergers and the comparison had to do with better relative performance a year ago.
CEO Statement
David Solomon, a CEO said on a conference call with analysts, “The year-over-year increase in our stress capital buffer does not seem to reflect the strategic evolution of our business and the continuous progress we’ve made to reduce our stress loss intensity, which the Federal Reserve had recognized in our last three tests.”
“ Given this discrepancy, we are engaging with our regulators to better understand its determinants.” he added.
Follow Wat-Not on Facebook, Twitter, and Instagram
GIPHY App Key not set. Please check settings