Goldman Sachs Q2 2019 results reveal a 6.4% fall in net income to $2.2bn for the quarter to end June.
This compares to net income of $2.35bn for the year ago quarter.
The results reflect flat fixed income trading activity and weakness in debt underwriting.
For Goldman Sachs Q2 2019 total net revenue is down by 2% y-o-y to $9.5bn.
On the other hand, the Goldman Sachs Q2 2019 results are ahead of analyst forecasts.
Less positive metrics include a rise in the bank’s cost-income ratio. In H1 2019 the cost income ratio of 65.6% is up by 1 percentage point from H1 2018.
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Investment banking, management and institutional client services, post yearly declines in revenue.
Operating expenses of $6.12bn for the second quarter of 2019 are essentially unchanged compared with the second quarter of 2018. But the Q2 2019 operating expenses are up 4% compared with the first quarter of 2019.
Total assets are up by 2% at $945bn. Deposits inch up by 1.2% from a year ago to $166bn.
Goldman Sachs Q2 2019 results: dividend increase
Goldman Sachs’ share price is up by 24% for the period 1 January to 30 June (see table).
“Given the strength of our client franchise, we are well positioned to benefit from a growing global economy. And, our financial strength positions us to return capital to shareholders. This includes a significant increase in our quarterly dividend in the third quarter,” says CEO David Solomon.
Specifically, Goldman Sachs increases its quarterly dividend to $1.25 from $0.85.
Meantime, Goldman Sachs is investing $25m in EU-based deposit marketplace Raisin. The German start-up has now raised €195m. The fresh capital injection will help Raisin’s plans to expand to the US.
Raisin has brokered €14bn for more than 185,000 customers across Europe since launching in 2013.