Financial Results

Investment Revenues At Goldman Sachs Fell Year-On-Year In Q2

Tom Burroughes, Group Editor, July 21, 2016

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The investment and banking titan logged a revenue fall at its asset management arm in the second quarter of the year.

US-listed Goldman Sachs has reported revenues in investment management of $1.35 billion for the second quarter of 2016, a year-on-year fall of 18 per cent but broadly flat compared with the first quarter of 2016. 

The decrease in asset management net revenues primarily reflected “significantly lower incentive fees”, the firm said in a statement earlier this week. 

Management and other fees also fell slightly, reflecting shifts in the mix of client assets and strategies, partially offset by the impact of higher average assets under supervision. 

During the quarter, total assets under supervision increased $23 billion to $1.31 trillion. Long-term assets under supervision increased $20 billion, reflecting net market appreciation of $19 billion, primarily in fixed income and equity assets, and net inflows of $1 billion. In addition, liquidity products increased $3 billion, Goldman Sachs said.

Across all business lines, Goldman Sachs reported net revenues of $7.93 billion and net earnings of $1.82 billion for the second quarter ended June 30. Diluted earnings per common share were $3.72 compared with $1.98 for the second quarter of 2015 and $2.68 for the first quarter of 2016.

At the end of June, the firm’s common equity tier one ratio, as calculated in accordance with the standardized approach and the Basel III advanced approach, were 13.7 per cent and 12.2 per cent, respectively.

Operating expenses were $5.47 billion for the second quarter of 2016. This figure was 26 per cent lower than the second quarter of 2015 and 15 per cent higher than the first quarter of 2016.

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