Goldman Sachs had a blast in second-quarter profit, boosted by investment banking

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Goldman Sachs (GS) reported second-quarter earnings results on Tuesday that far exceeded Wall Street expectations, driven by strength in investment banking.

Here are the key numbers against expectations:

Adjusted earnings per share (EPS): $15.02 per share versus an estimated $10.15

Revenue: $15.39 billion versus $12.43 billion estimated

Goldman Sachs’ investment banking business posted its second best quarter ever at $3.61 billion, after the record first quarter. Revenue from investment banking accounted for 24% of total revenue in the quarter. Goldman Sachs noted that the backlog of investment banking transactions “increased significantly compared to the end of 2020, ending the quarter at a record high.”

Citing “continuous progress on our strategic priorities,” CEO David Solomon said that “while the economic recovery is underway, our customers and communities continue to face challenges in overcoming the pandemic.”

The banking giant once again topped the industry’s league tables for mergers, stock floats and initial public offerings (IPOs), which were on a rip in a market floating at record levels.

However, the global market fell 32% from last year to $4.90 billion, with revenue from fixed income, currencies and commodities (FICC) down 45% from last year to $2.32 billion, while revenue from equities fell 12% to 2.58. billion dollars compared to last year. to the same quarter of 2020.

Elsewhere, asset management revenue more than doubled from a year ago to $5.13 billion, driven by “significantly higher” net income in equity investments. Asset management revenue accounted for 33% of total revenue in the quarter.

Revenue in the consumer and wealth management business was up 28% from a year ago to $1.75 billion, but remained flat from the prior quarter.

Goldman shares were last trading down 0.53%, or down $2, near $378.50.

Julia LaRouche is a Yahoo Finance reporter. Follow her on Twitter.

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