Goldman Sachs Profits Jump 74%
July 19, 2016
Second-Quarter Profit Grew 74%
New York, NY — Goldman Sachs Group Inc (NYSE:GS) reported a 74% jump in its second-quarter profit as fixed-income revenue rose and compensation costs fell.
Goldman Sachs’s board of directors declared a dividend of $0.65 per common share, according to the company’s earnings statement. The company was expected to increase the payout to $0.70, according to the Bloomberg Dividend Forecast. (Source: “Goldman Profit Rises 74%,” Bloomberg, July 19, 2016)
Net income rose to $1.82 billion from $1.05 billion a year earlier, the company said in a press release on its web site. (Source: “Goldman Sachs reports second quarter earnings,” Goldman Sachs Investor Relations, May 19, 2016.) Diluted earnings per common share were $3.72 compared to $1.98 for the second quarter of 2015. Eighteen analysts surveyed by Bloomberg estimated per-share earnings of $3.05.
Net revenue from fixed income, currency, and commodities surged 20% to $1.93 billion for the second quarter due to significantly higher net revenue in currencies and credit products, as well as in interest rate products and commodities, the New York-based investment bank reported.
The compensation costs fell 13% to $3.33 billion for the second quarter of 2016, when compared to the same period last year.
“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,” said Lloyd Blankfein, chairman and chief executive officer. (Source: Ibid.)
