UPDATE: Goldman Sachs Posts Better-Than-Expected Q2 Results, Shares Rise
Shares of The Goldman Sachs Group (NYSE: GS) gained around 1.9% in pre-market trading after the bank reported stronger-than-expected second-quarter results.
Goldman Sachs posted its quarterly earnings of $2.04 billion, or $4.10 per share, up 9% from $1.93 billion, or $3.70 per share, in the year-ago period.
Its total revenue rose 6% to $9.13 billion from $8.61 billion. However, analysts were projecting earnings of $3.05 per share on revenue of $7.97 billion.
Net revenue in Investment Banking climbed 15% to $1.78 billion, while revenue in Institutional Client Services declined 11% to $3.83 billion. Fixed income revenue declined 10% to $2.22 billion versus $2.46 billion.
Investing & Lending revenue surged 46% to $2.07 billion for the quarter, while Investment Management revenue climbed 8% to $1.44 billion.
Total staff declined 1% versus the end of the first quarter of 2014. Non-compensation expenses increased 5% y/y to $2.38 billion in the quarter of 2013. Operating expenses climbed 6% y/y to $6.30 billion.
On July 14, 2014, the bank's board declared a dividend of $0.55 per share. The bank reported Basel III Common Equity Tier 1 ratio of 11.4% at June 30.
The company's press release offered the following comment from Lloyd C. Blankfein, Chairman and Chief Executive Officer:
“We are pleased with our results for the quarter in the context of mixed operating conditions during the period.”
Goldman Sachs shares gained 1.95% to $170.25 in pre-market trading.
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