Banking giant Goldman Sachs (NYSE: GS) announced its Q2 results. Its EPS of $3.08 was less than half of last year’s figure of $7.73 per share and came in below analysts’ estimates of $3.16 per share. The bank’s earnings were hit by losses related to GreenSky, including impairment goodwill of $504 million, $485 million in real estate writedowns, and a drop in its trading and investment banking businesses. The bank’s investment banking fees fell 24% year-over-year to $3 billion.
The bank’s revenues also declined by 8% year-over-year to $10.9 billion but were above Street forecasts of $10.6 billion. GS reported an annualized return on average common shareholders’ equity (ROE) of 4% in Q2, while the return on average tangible common shareholders’ equity (ROTE) was 4.4%.
The bank’s Board of Directors has approved a 10% rise in quarterly dividends to $2.75 per common share starting from the third quarter of 2023.
Analysts are bullish about GS stock with a Strong Buy consensus rating based on 11 Buys and three Holds.
