- Goldman Sachs achieved net revenue of $14.58 billion in 2Q, a 15% increase compared to last year, exceeding the estimate of $13.53 billion.
- The FICC sales and trading revenue reached $3.47 billion, beating the estimated $3.26 billion.
- Equities sales and trading revenue amounted to $4.30 billion, surpassing the forecast of $3.72 billion.
- Global Banking & Markets net revenues were $10.12 billion, up 24% from the previous year, outperforming the expected $9.03 billion.
- Investment banking revenue showed a 27% year-over-year increase to $2.19 billion, above the predicted $1.8 billion.
- Advisory revenue rose significantly by 71% to $1.17 billion, exceeding the projection of $852.7 million.
- Equity underwriting revenue was $428 million, a slight 1.2% increase year-over-year, aligning closely with the estimate of $384.8 million.
- Debt underwriting revenue slightly declined by 5.3% to $589 million, which was below the forecast of $592.5 million.
- Earnings per share stood at $10.91, compared to $8.62 a year ago.
- Net interest income was $3.10 billion, surpassing the estimate of $2.43 billion.
- Platform Solutions recorded a pretax loss of $57 million, better than the expected loss of $85.6 million.
- Total deposits were $466 billion, showing a slight quarter-over-quarter decrease of 1.1%.
- Provision for credit losses increased by 36% year-over-year to $384 million but fell short of the estimated $393.2 million.
- Total operating expenses increased by 8.3% to $9.24 billion, which was higher than the expected $8.75 billion.
- Compensation expenses rose by 10% to $4.69 billion, exceeding the estimated $4.44 billion.
- Annualized return on equity was 12.8%, above the forecast of 11.3%.
- Return on tangible equity stood at 13.6%, surpassing the estimate of 12%.
- Standardized CET1 ratio came in at 14.5%, slightly below the expected 14.7%.
- The book value per share increased to $349.74 from $327.13 in the prior year.
- The efficiency ratio was at 63.4%, better than the estimated 64.8%.
- Assets under management increased by 12% year-over-year to $3.29 trillion, slightly above the forecast of $3.22 trillion.
- Total AUS net inflows were only $5 billion, a sharp 93% decline year-over-year, well below the expected $35.02 billion.
- Loans totaled $217 billion, surpassing the projected $211.09 billion.
- CEO Solomon commented that the economy and markets are responding positively to evolving policies, while stressing the importance of risk management.
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Goldman Sachs Group on Smartkarma
Analysts on Smartkarma are closely monitoring Goldman Sachs Group, as highlighted by the recent report from Asia Real Estate Tracker on January 24, 2025. According to the report, Goldman Sachs is expanding its presence in Japan through a data center joint venture with Asia Pacific Land. This move indicates a bullish sentiment towards the region’s property markets, with other major players like CPPIB and S&P also showing optimism through their investments in real estate ventures across Asia. CPPIB and MGRV, for instance, are collaborating on a $350 million venture in Korean rental housing, while S&P is forecasting a rebound in China’s property market driven by an increase in secondary sales, signaling positive growth ahead.
A look at Goldman Sachs Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Goldman Sachs Group shows a promising long-term outlook with consistent ratings across multiple factors. With a solid score of 3 in Value, Dividend, Growth, and Resilience, the company demonstrates stability and potential for steady performance in the future. These scores suggest that Goldman Sachs Group is well-positioned in terms of its financial health, growth prospects, and ability to weather economic challenges.
Furthermore, the company excels in Momentum with a top score of 5, indicating strong positive market sentiment and potentially favorable price trends. This suggests that investors have high confidence in Goldman Sachs Group‘s current trajectory and future prospects, which could bode well for the company’s stock performance in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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