GS

Goldman Sachs Q2 Profit Beats Estimates; Net Revenues Up 41%

(RTTNews) - The Goldman Sachs Group, Inc. (GS) reported second quarter earnings per share of $6.26 compared to $5.81, a year ago. On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $3.78, for the quarter. Analysts' estimates typically exclude special items. During the second quarter of 2020, the company recorded net provisions for litigation and regulatory proceedings of $945 million. This reduced EPS by $2.60 in the second quarter of 2020. Net earnings applicable to shareholders increased to $2.25 billion from $2.20 billion.

Second quarter net revenues were $13.30 billion, 41% higher than a year ago. Analysts expected revenue of $9.73 billion for the quarter. The company said this increase reflected significantly higher net revenues in Global Markets and Investment Banking and higher net revenues in Consumer & Wealth Management, partially offset by lower net revenues in Asset Management.

Net revenues in Global Markets were $7.18 billion for the second quarter of 2020, up 93% from prior year. Net revenues in Investment Banking were $2.66 billion, 36% higher than last year.

Provision for credit losses was $1.59 billion for the second quarter of 2020, compared to $214 million, previous year. The allowance for credit losses was $4.39 billion as of June 30, 2020.

Shares of Goldman Sachs were up nearly 4% in pre-market trade on Wednesday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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