Goldman Sachs Reports Profits, Revenue Slipping

Goldman's Main Street transformation including the upcoming Apple card is costing it big money

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Goldman Sachs Group today reported a better than expected quarterly profit as the Wall Street investment bank benefited from higher equity trading and an increase in lending to its wealthy clients and companies.

Investment banking revenues fell 9%, weighed down by "significantly lower net revenues in debt underwriting, primarily reflecting lower net revenues from investment-grade and leveraged finance activity", although the fall was not as bad as analysts had predicted. The investment house said that it had $5.81 in earnings per share (EPS) and $9.46 billion in revenue.

The bank's net earnings applicable to common shareholders fell 6% to $2.20 billion in the quarter ended June 30. The investment management company reported $5.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.74 by $0.97.

Shares of Goldman Sachs Group Inc (NYSE:GS) have been given a consensus recommendation of "Hold" by the eighteen brokerages that are covering the company, MarketBeat Ratings reports. Articles appear on for a limited time.

JPMorgan, the largest USA bank by assets, beat profit estimates but interest margin, a key measure of profitability, slipped, triggering concerns of lower interest rates hurting bank profits, a day after Citigroup Inc reported a similar drop. This represents a $5.00 dividend on an annualized basis and a yield of 2.36%. Raymond James reissued a "neutral" rating and set a $35.00 price objective on shares of Stantec in a research note on Monday, May 13th. Two analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation and seven have issued a buy recommendation on the company. This is a positive change from Goldman Sachs Group's previous quarterly dividend of $0.85.

Goldman Sachs Group (NYSE:GS) last released its quarterly earnings data on Monday, April 15th. JPMorgan Chase & Co. set a GBX 620 ($8.10) target price on shares of HSBC and gave the company a "sell" rating in a research note on Tuesday, April 16th. The firm now has a $22.00 target price on the financial services provider's stock. The company has a fifty day moving average price of $193.55.

Still, the stock rose as much as 2% Tuesday afternoon, trading for the first time since January at what the bank says is the value of everything it owns minus what it owes.

The Goldman Sachs Group, Inc operates as an investment banking, securities, and investment management company worldwide.

Net revenues in Institutional Client Services dipped 3% year-on-year to $3.48bn.

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