NEW YORK, Tuesday, July 16, 2024- Goldman Sachs reported a significant rebound in its second quarter profits, which soared 150% year-over-year, driven by a surge in investment banking activities.
The Goldman Sachs Q2 2024 performance report was released yesterday, July 15.
The firm’s net income reached $3.04 billion, surpassing analyst expectations. Total revenue climbed 17% to $12.73 billion, signaling a recovery in Wall Street activities after a prolonged slump.
The firm showed improved momentum following challenges in the previous year, including a deal-making slump and a costly exit from consumer banking.
Investment banking fees rose 21% to $1.7 billion, boosted by increases in debt and equity underwriting and a 7% rise in advisory fees.
While investment banking performance dipped 17% compared to Q1, the firm’s fixed-income trading revenue rose 17% and asset and wealth management revenues increased 27%.
Goldman also addressed the Federal Reserve’s recent stress test results, which suggested an increased stress capital buffer.
The bank stated that the firm plans to moderate its stock buybacks in response, mentioning ongoing discussions with regulators about the test results.
Goldman Sachs’ Q2 report showcases a strong investment banking and trading recovery, positioning the firm well for continued growth amid a rebound in capital markets.
GS’ full Q2 report can be accessed here.
