(AOF) – Goldman Sachs presented results down sharply due to significant impairments, the fall in investment banking activity linked to the low number of mergers & acquisitions transactions and bond brokerage. However, the action of the famous American investment bank rose 1.28% to 341.58 dollars. While other major banks have reported lower profits, including Morgan Stanley, Goldman Sachs is the only one to have published earnings per share below expectations.
In the second quarter, Goldman Sachs recorded net profit group share down 62% to 1.07 billion dollars, or 3.08 dollars per share. The latter is lower than the consensus amounting to 3.18 dollars. This is its lowest quarterly profit for 3 years.
The accounts of Goldman Sachs were penalized by a depreciation of goodwill of 504 million dollars linked to its consumer credit activities (GreenSky) in the process of being sold. The bank also took write-downs of approximately $485 million related to its consolidated real estate investments.
Of the US bank’s $178 billion in loans, $27 billion relates to commercial real estate, including $11 billion for warehouses.
Goldman Sachs’ revenues fell 8% to $10.895 billion, beating Wall Street’s forecast of $10.84 billion.
The institution has faced a drop in income from its investment banking activities due to the sharp slowdown in mergers & acquisitions activity. They were down 20% to $1.43 billion.
In addition, bond brokerage (FICC) fell 26% to $2.71 billion as Wall Street targeted $2.8 billion. In contrast, equity brokerage revenue rose 1% to $2.97 billion thanks to financing activities. The consensus was just $2.4 billion.
The other major US banks benefited from the strong increase in interest income in retail banking.
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