Goldman Sachs Group Inc opened for trading at $162.36 and hit $164.09 on the upside on Monday, eventually ending the session at $163.33, with a gain of 1.05% or 1.69 points.
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Goldman Sachs reported earnings and revenue for the second quarter on Tuesday that topped Wall Street’s forecasts.
In general, Goldman Sachs has got a grasp on its costs in comparison to the year before, with operating expenses down to $5.5bn, a 26 per cent decrease on the year before but a 15 per cent increase compared to the first quarter of 2016. The trading figures exclude an accounting adjustment in last year’s second quarter.
Net revenues, including net interest income, for the quarter fell 12.6% to $7.93 billion from $9.07 billion a year ago. Profit in the year-earlier quarter was weighed down by $1.45 billion in legal expenses that went toward an eventual mortgage-related settlement with the U.S. Department of Justice.
Goldman and other big Wall Street banks suffered under-performance in their FICC businesses in the first quarter of this year, which impacted its revenue.
Goldman Sachs has been forced to do this due to the slowdown on Wall Street. Four analysts surveyed by Zacks expected $7.58 billion.
Analysts were expecting earnings per share of $3.08 on revenue of $7.55 billion, according to Bloomberg. That’s despite a 20% jump in bond, commodities and currency trading revenues in the second quarter.
Institutional Client Services revenues totaled $3.68 billion.
“Although market-making conditions generally improved compared with the first quarter of 2016, Fixed Income, Currency and Commodities Client Execution continued to operate in a challenging environment characterized by low interest rates, political uncertainty and concerns about global growth”, the firm said.
Investors have been watching Goldman’s fixed income unit closely.
Despite the uncertainty created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently.
Investing & Lending revenues totaled $1.11 billion.
The Goldman Sachs Group Inc.is a bank holding company and a financial holding company. Interestingly, the compensation expense is by far the highest expense at the firm.
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Net revenues in Investment Banking were $1.79 billion for the second quarter of 2016, 11% lower than the second quarter of 2015.
