Summary
Goldman Sachs Group, Inc. (GS) reported its financial results for the second quarter and the first half of 2017 in its 10-Q filing. For the second quarter, net earnings were $1.83 billion, essentially unchanged from the prior year, with diluted earnings per share increasing by 6% to $3.95. The firm maintained strong capital ratios, with a Common Equity Tier 1 (CET1) ratio of 13.9% under the Standardized approach. Net revenues remained stable at $7.89 billion, as strong performance in Investing & Lending and Investment Management offset declines in Institutional Client Services, particularly in Fixed Income, Currency, and Commodities (FICC) Client Execution. For the first half of 2017, net earnings surged by 38% to $4.09 billion, with diluted earnings per share increasing by 42% to $9.10. This significant improvement was partly driven by a $485 million reduction in the provision for taxes due to the adoption of a new accounting standard for employee share-based payments. Net revenues for the half-year increased by 12% to $15.91 billion, propelled by strong growth in Investing & Lending, Investment Management, and Investment Banking. Operating expenses increased by 6% in the first half, primarily due to higher compensation and benefits expenses linked to increased net revenues.
Financial Highlights
36 data points| Interest Expense | $2.43B |
| Net Income | $1.83B |
| EPS (Basic) | $4.00 |
| EPS (Diluted) | $3.95 |
| Shares Outstanding (Basic) | 406.10M |
| Shares Outstanding (Diluted) | 413.30M |
Key Highlights
- 1Net earnings for Q2 2017 were $1.83 billion, flat year-over-year, while diluted EPS increased 6% to $3.95.
- 2Net revenues for Q2 2017 were $7.89 billion, essentially unchanged from Q2 2016, with growth in Investing & Lending and Investment Management offsetting declines in Institutional Client Services (FICC Client Execution).
- 3First half 2017 net earnings increased 38% to $4.09 billion, and diluted EPS rose 42% to $9.10.
- 4First half 2017 net revenues increased 12% to $15.91 billion, driven by strong performance in Investing & Lending, Investment Management, and Investment Banking.
- 5Operating expenses for Q2 2017 decreased by 2% year-over-year, while first half operating expenses increased by 6% due to higher compensation.
- 6The firm maintained strong capital and liquidity positions with a CET1 ratio of 13.9% (Standardized approach) and global core liquid assets of $221 billion as of June 2017.
- 7Adoption of ASU No. 2016-09 in Q1 2017 resulted in a $485 million tax benefit in the first half of 2017, boosting EPS by $1.16.