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Goldman Crushes Earnings Forecast as Investment Banking Revenue Surges

Goldman's Investment banking and asset management revenues came in well ahead of Street forecasts as the bank crushed second quarter earnings estimates.

Goldman Sachs Group  (GS) - Get Report posted stronger-than-expected second quarter earnings Tuesday thanks to a surge in asset management and investment banking revenues. 

Goldman said earnings for the three months ending in June were pegged at $15.02 per share, nearly 140% higher than last year's tally and firmly ahead of the Street consensus forecast of $10.24 per share. Group revenues, Goldman said, rose 16% to $15.4 billion, the second highest on record that again beat analysts' forecasts of a $12.1 billion total.

Global markets revenues were down 32% from last year to $4.9 billion, Goldman said, while asset management revenues surged 144% to $5.1 billion, nearly double the Street consensus forecast. Investment banking revenues, meanwhile, were up 36% to $3.61 billion.

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“Our second quarter performance and record revenues for the first half of the year demonstrate the strength of our client franchise and our continued progress on our strategic priorities," said CEO David Solomon. "While the economic recovery is underway, our clients and communities still face challenges in overcoming the pandemic."

"But, as always, I am proud of the dedication and resilience of our people, who have worked tirelessly to help our clients navigate the ever-changing market environment.”

Goldman Sachs shares were marked 0.9% lower in early trading immediately following the earnings release at $376.50. each, a move that would extend the stock's year-to-date gain to around 43%.

Earlier in the session, Goldman's larger rival, JPMorgan Chase  (JPM) - Get Report, posted a 37% increase in investment banking revenues that helped offset an 8% slump in net interest income. 

JPMorgan said earnings for the three months ending in June were pegged at $3.78 per share, up 174% from the same period last year and well ahead of the Street consensus forecast of $3.18 per share.