CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Goldman Sachs Q2 profit growth driven by investment banking

By Neil Dennis

12:10, 13 July 2021

By Neil Dennis

12:10, 13 July 2021

Share this article

Subscribe to Weekly Highlights

The major market events for the week ahead right in your inbox. Subscribe
Goldman Sachs logo

US bank Goldman Sachs reported a 16% rise in second-quarter net revenues on Tuesday and earnings that easily beat analysts’ expectations, thanks to growth in investment banking.

The bank reported net revenue of $15.4bn in the second three months of 2021, up 16% from the same quarter of 2020, eclipsing the $12.2bn expected by analysts polled by Refinitiv, but down from the $17.7bn reported in the first quarter this year.

Earnings per share rose to $15.02, up from $6.26 in the same period a year ago and beating analysts’ forecasts of $10.24 a share.

For the first half, net revenues stood at a record $33.1bn, the bank said. Year-to-date net earnings were $12.3bn, while six-month earnings per share stood at $33.64.

Investment banking

Revenues from investment banking were $3.61bn – the second-best quarterly performance ever – up 36% from a year ago, thanks to equity underwriting, particularly driven by strong initial public offering (IPO) activity.

David Solomon, chairman and chief executive of Goldman Sachs, said: “Our second-quarter performance and record revenues for the first half of the year demonstrate the strength of our client franchise and our continued progress on our strategic priorities.”

AMZN

102.05 Price
+1.750% 1D Chg, %
Long position overnight fee -0.0249%
Short position overnight fee 0.0027%
Overnight fee time 21:00 (UTC)
Spread 0.15

FRC

13.77 Price
-3.470% 1D Chg, %
Long position overnight fee -0.0249%
Short position overnight fee 0.0027%
Overnight fee time 21:00 (UTC)
Spread 0.15

TSLA

195.50 Price
+0.980% 1D Chg, %
Long position overnight fee -0.0249%
Short position overnight fee 0.0027%
Overnight fee time 21:00 (UTC)
Spread 0.30

NVDA

273.57 Price
+1.260% 1D Chg, %
Long position overnight fee -0.0249%
Short position overnight fee 0.0027%
Overnight fee time 21:00 (UTC)
Spread 0.11

The bank breezed past analyst expectations in its first quarter, when record levels of mergers and acquisitions activity helped drive equity underwriting profits.

What is your sentiment on GS?

321.32
Bullish
or
Bearish
Vote to see Traders sentiment!

Shares surge

Goldman Sachs shares have risen 44% since the start of the year as the global recovery gained traction and – as regulatory curbs on dividend payments were lifted – banks promised large shareholder returns.

Indeed, on Tuesday, Goldman Sachs said the board had approved a 60% increase in its dividend to $2 a share, which will be paid on 1 September. In addition, the bank has returned $1.44bn to shareholders during the second quarter through share repurchases and common stock dividends.

The shares were up 0.4% at $380.50 in pre-market trading in New York.

Trade Goldman Sachs Group – GS CFD

1m
5m
15m
30m
1H
4H
1D
1W

Read more: Goldman Sachs profits boosted by global M&A

Rate this article

Share this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Latest Stocks news

Still looking for a broker you can trust?

Join the 500.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading