Goldman Sachs reports slight drop in Q2 report

Alan Sayer
July 14, 2021 1:59 pm

Goldman Sachs has released its 2021 second quarter report showing a slight fall in net revenue and net profits for the bank compared to its first quarter figures. The Q2 net revenue for 2021 was $15.39 billion, down from the Q1 figure of $17.7 billion. It puts the year-to-date earnings for the company at $33.09 billion. 

The net profits for Q2 stand at $5.49 billion. Also down from the Q1 earnings, which were $6.84 billion. This shows that the expenses for Q1 were higher than those for Q2. With Q2 having expenses after tax of $9.9 billion and Q1 having expenses after tax of $10.87 billion. 

Despite the slight drop in financial performance, this is still a strong financial showing. This is demonstrated by the returns that shareholders in Goldman Sachs are seeing. The Q2 earnings per share figure is $15.02. This is a significant increase from the 2020 Q2 earnings per share, which were $0.53. However, it is slightly down from the 2021 Q1 earnings per share, which were $18.60.

Goldman Sachs volumes

The book value per share at the end of Q2 2021 is $264.90. This gives a rise of 12.2% for the year to date. It shows that after the uncertainty of Covid-19, performance is starting to turn around.

Shareholders have seen a return on tangible equity of 28.9% for the year to date, and Q2 showing 25.1%. Goldman Sachs has responded to this overall positive performance by increasing dividends by 60% to give a total dividend of $2 per share. This will begin in Q3 of 2021.

While the figures are down slightly from what was posted in Q1, the Goldman Sachs report does confirm that the figures are the second-highest the company has posted. This was also made up by the asset management arm of the firm posting record-high revenues of $5.13 billion. Asset management made up a third of the total revenue for the company during Q2, which shows the importance of this area for the company.

This has put Goldman Sachs in a good position financially as the strong performance has allowed it to increase its cash reserves from $191 billion at the end of Q1 to $240 billion at the end of Q2.

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Having gained a degree in economics, Alan entered the world of financial services starting his career in London and then moving to New York for a number of years. His first post at a City bank saw him establish a reputation as an forex trader. Having recently returned from New York after eight successful years, Alan is now a prosperous trader in his own right concentrating on commodities and forex.
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