Goldman Sachs beats estimates and delivers strong results for the second quarter
The Goldman Sachs Group, Inc. (NYSE: GS) reported yesterday net revenues of $11.86 billion and net earnings of $2.93 billion for the second quarter ended June 30, 2022. Net revenues were $24.80 billion and net earnings were $6.87 billion for the first half of 2022.
Diluted earnings per common share (EPS) was $7.73 for the second quarter of 2022 compared with $15.02 for the second quarter of 2021 and $10.76 for the first quarter of 2022, and was $18.47 for the first half of 2022 compared with $33.64 for the first half of 2021.
Annualized return on average common shareholders’ equity (ROE)1 was 10.6% for the second quarter of 2022 and 12.8% for the first half of 2022. Annualized return on average tangible common shareholders’ equity (ROTE)1 was 11.4% for the second quarter of 2022 and 13.6% for the first half of 2022.
“We delivered solid results in the second quarter as clients turned to us for our expertise and execution in these challenging markets. Despite increased volatility and uncertainty, I remain confident in our ability to navigate the environment, dynamically manage our resources and drive long-term, accretive returns for shareholders,” according to David Solomon, Chairman and Chief Executive Officer
Investment Banking generated quarterly net revenues of $2.14 billion, including strong net revenues in Financial advisory. The firm ranked #1 in worldwide announced and completed mergers and acquisitions and in worldwide equity and equityrelated offerings and common stock offerings for the year-to-date.
Global Markets generated quarterly net revenues of $6.47 billion, reflecting strong performances in both Fixed Income, Currency and Commodities (FICC) and Equities, particularly in financing.
Consumer & Wealth Management generated record quarterly net revenues of $2.18 billion, 25% higher than the second quarter of 2021.
Firmwide assets under supervision increased $101 billion during the quarter, including inflows of $305 billion from the acquisition of NN Investment Partners (NNIP), to a record $2.50 trillion. Firmwide Management and other fees were a record $2.23 billion for the second quarter of 2022, 22% higher than the second quarter of 2021.
Book value per common share increased by 2.9% during the quarter and 6.2% during the first half of 2022 to $301.88.
On July 14, 2022, the Board of Directors of The Goldman Sachs Group, Inc. approved a 25% increase in the quarterly dividend to $2.50 per common share beginning in the third quarter of 2022.