Goldman Sachs has reported second-quarter earnings that blew away analysts’ expectations, propelled higher by strong investment banking revenues amid a robust market for initial public offerings (IPOs).
The banks earnings per share (EPS) in this year’s second quarter came in at $15.02 U.S., compared to $10.24 U.S. expected by analysts polled by Refinitiv. A year ago, Goldman Sachs recorded EPS of $6.26 U.S.
Goldman Sachs second quarter revenue totaled $15.39 billion U.S. versus $12.17 billion U.S. that analysts had expected.
Goldman Sachs’ investment banking division posted its second-highest revenue for a quarter ever, behind the first quarter of 2021, as a booming IPO market boosted the bank’s equity underwriting.
Second quarter net revenues from investment banking totaled $3.61 billion U.S., ahead of the consensus estimate of $3 billion U.S., according to FactSet. Goldman Sachs said the second quarter also saw its second strongest performance in financial advisory, equity underwriting and debt underwriting.
Last month, following the positive results of the Federal Reserve’s annual stress test, Goldman Sachs said it planned to boost its dividend by 60% to $2 per share, subject to approval from the bank’s board of directors.
Among the biggest U.S. banks, Goldman Sachs gets the largest share of its revenue from Wall Street activities including trading and investment banking. Shares of Goldman Sachs have risen 45% year-to-date to $380.50.
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