Goldman Sachs earnings suffer from reduced merger activity

(New York) Goldman Sachs net income fell 62% in the second quarter to $1.1 billion, again hurt by a lack of M&A deals as well as lower activity in asset management. ‘assets.


Turnover stood at 10.90 billion dollars over the same period, the banking group announced on Wednesday.

Both data are in line with consensus forecasts from FactSet analysts.

On the other hand, diluted per share and excluding exceptional items, earnings amounted to 3.08 dollars for the quarter against 7.73 dollars a year earlier. Analysts had expected $3.10.

Goldman Sachs’ performance also suffered a sharp decline compared to the first quarter of the year (-65% for profit), which had already been marked by a drop in the activity of its investment bankers and its brokers.

In trading before the opening of Wall Street, the action of Goldman Sachs was almost stable (-0.18%).

David Solomon, head of the American bank, indicated in a press release that he remained “completely confident that the continued implementation (of the group’s strategy) will allow us to achieve our exit targets. and create significant shareholder value”.

The annualized return on equity for the time being is still very low at 4% for the quarter and 7.8% over the first half, when management’s objective is to obtain around 15%.

The fall in turnover in the Global Banking and Markets branch (mergers and acquisitions, IPOs, capital raising) and in asset management was partially offset by the increase in the Platform Solutions branch (financial products ), noted the group.

In investment banking, Goldman Sachs saw a “significant decline in the overall completed M&A industry.”


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