In the second quarter of 2022, the American bank Goldman Sachs Group sharply reduced its net profit, but the figure exceeded market forecasts.
According to the bank’s report, its net profit in April-July amounted to $2.93 billion, or $7.73 per share, compared with $5.35 billion, or $15.02 per share, for the same period in 2021.
Analysts polled by FactSet had expected net income of $6.56 per share on average.
Revenue of Goldman Sachs in the past quarter decreased to $11.86 billion compared to $15.39 billion a year earlier, with a forecast of $10.78 billion.
The bank’s board of directors also recommended raising the quarterly dividend by 25% to $2.50 per share.
Goldman’s investment banking revenue fell 41% in the second quarter to $2.14 billion. At the same time, in the underwriting segment, the figure fell to $588 million from $1.24 billion.
Revenue from the Global Markets Division increased 32% to $6.47 billion. shares increased by 11%, amounting to $2.86 billion.
In asset management, revenue fell 79% to $1.08 billion, while wealth management and retail banking increased 25% to $2.18 billion.
Allocations to reserves to cover possible losses on non-performing loans amounted to $667 million, while in the second quarter of 2021 the bank released $97 million from such reserves.
The bank’s stock quotes are up 4% during preliminary trading on Monday. The capitalization of the bank since the beginning of the year has decreased by 23.2%, to $100.9 billion, while the Dow Jones index has lost 13.9% over this period.