Goldman Sachs Group Inc (NYSE:GS, XETRA:GOS) shares rose more than 6% on Tuesday after the investment bank reported second quarter results that exceeded Wall Street expectations, driven by strong performances in investment banking and trading.
For the quarter ended June 30, Goldman Sachs reported net earnings of $6.63 billion, or $20.98 per diluted share, compared with consensus estimates of $14.48 per share
Net revenue rose 39% from a year earlier to $20.34 billion, ahead of analysts’ expectations of $16.13 billion. The bank generated an annualized return on average common shareholders’ equity of 23.5% during the quarter. Global Banking & Markets revenue increased 53% year over year to $15.52 billion.
Investment banking fees rose 55% to $3.40 billion, reflecting stronger equity underwriting, debt underwriting and advisory activity. Goldman Sachs said equity underwriting benefited from increased secondary offerings and initial public offerings, while debt underwriting was driven by leveraged finance and asset-backed issuance. Advisory revenue also increased as completed mergers and acquisitions activity improved.