Sunday, October 12, 2025

Latest

Goldman Sachs Reports Biggest Earnings in Over a Decade, Generates $2.42 Billion Profit

With a turbulent second quarter at an end, major US banks have begun releasing their financial reports. Wells Fargo released its financials on Tuesday, suffering its first quarterly loss since the Great Depression. The following day however, Goldman Sachs also released its financials, with a vastly different outcome.

Second quarter earnings for Goldman Sachs were the highest in almost a decade, crushing previous estimates in light of the coronavirus pandemic. The bank had generated $2.42 billion in profit, which equates to approximately $6.26 per share – thus significantly surpassing a Refinitiv forecast of only $3.78 per share. Moreover, Goldman also earned revenues of $13.3 billion, which is $3.5 billion more than the estimate. As a result, the bank’s shares rose by 1.5% on the news.

Goldman Sachs is currently one of the only US banks that is the nearest to being a pure-play Wall Street bank, and gets the largest share of its revenue from investment banking and trading on Wall Street. Goldman’s distinct model has previously been a disadvantage, as the other US banks have relied on consumer deposits and retail banking for their profits. Amid the coronavirus pandemic however, the other banks had to set aside significant provisions to cover record losses- something that Goldman was predominantly spared from.

With the Federal Reserve going to all ends of the world to prop up US credit markets, the spur in bond trading and equity issuance has amassed a record amount of banking fees for Goldman. Revenue from bond trading reached $4.24 billion – an increase of nearly 150%. In the meantime, equity trading revenue was up 46% to a total of $2.94 billion, the highest in 11 years.

Goldman’s consumer and wealth management division had an increase of 9% in revenue to a total of $1.36 billion, stemming from an increase in management fees as well as loans from the bank’s Apple Card Partnership. Despite the record earnings however, only three out of Goldman’s four main divisions had produced more revenue compared to the previous year. The bank’s asset management division had its revenue fall by 18% to $2.1 billion, with the downfall attributed to reduced gains from private equity holdings.

Information for this briefing was found via CNBC, Bloomberg, The Australian Business Review, and Goldman Sachs. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

First Majestic Posts Record Quarterly Silver Production In Q3

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

Related News

JP Morgan To Acquire First Republic Following Government Seizure And Failed Auction

JPMorgan Chase & Co (NYSE: JPM) won the bidding war to acquire First Republic Bank...

Monday, May 1, 2023, 10:42:41 AM

Yield Stars: First Republic Bank

Our value seeking series on the under-performing banking sector kicks off with California-based First Republic...

Tuesday, October 27, 2020, 02:01:00 PM

PacWest Mulls Sale Hours After Fed Chief Says US Banking System “Sound And Resilient”

According to people familiar with the situation, PacWest Bancorp (NASDAQ: PACW), a regional bank teetering...

Thursday, May 4, 2023, 09:14:00 AM

Canada’s Banking Regulator Will Cease Extending Loan Payment Deferrals By The End Of September

It appears that the rules for mortgage deferrals have changed once again. The Office of...

Tuesday, September 1, 2020, 05:13:00 PM

David Sacks vs. Marc Cohodes, Explained

Amid all the chaos of leading banks capsizing into regulators hands, leaving depositors wary of...

Monday, March 20, 2023, 11:41:00 AM