Global Markets buoy Goldman Sachs's Q2 topline, firm hikes payout

Goldman Sachs beat analysts' estimates for its second quarter earnings and sales thanks to a better-than-expected performance across the franchise and upped its quarterly dividend payment.

The iconic Wall Street investment banking heavyweight posted a 23% decline in total revenues versus a year ago to reach $11.86bn (FactSet: $10.78bn) for a nearly halving in earnings per share to $7.73, although the latter too exceeded consensus (FactSet: $6.56).

Global Markets revenue jumped 32% to $6.47bn (FactSet: $5.59bn), as revenues from equities trading printed at $2.86bn, up from $2.58 one year before (FactSet: $2.68bn), while that from Fixed Income, Currencies and Commodities jumped from $2.32bn to $3.61bn (FactSet: $2.89bn).

Consumer and Wealth Management sported a 25% jump in its topline to $2.18bn.

Investment banking revenues on the other hand fell 41% to $2.14bn (FactSet: $2.07bn).

Asset management revenues cratered by 79% in comparison to the year earlier period to reach $1.08bn, due to net losses in equity investments, on mark-to market net losses as credit spreads widened amid the prolonged war in Ukraine, and significantly lower net revenues in lending and debt investments, the latter on account of mark-downs on debt securities and loans.

The lender also incurred in $667m of provisions for credit losses, against a net benefit of $92m during the comparable prior year quarter.

Nonetheless, the lender hiked its quarterly dividend pay-out by a quarter to $2.50 a share.

As of 1423 BST, shares of Goldman Sachs were moving up by 4.13% to $306.