Goldman Sachs Group reported Monday that net profit for the second quarter nearly tripled from last year, reflecting significantly lower provisions for bad loans and revenue growth across operating segments.
Both earnings per share and quarterly revenues topped analysts' expectations. The company also declared a 9% higher quarterly dividend.
"We are pleased with our solid second quarter results and our overall performance in the first half of the year, reflecting strong year-on-year growth in both Global Banking & Markets and Asset & Wealth Management," said David Solomon, chairman and CEO.
For the quarter, net earnings applicable to common shareholders surged to $2.89 billion or $8.62 per share from $1.07 billion or $3.08 per share in the prior-year quarter.
Provision for credit losses for the quarter more than halved to $282 million from $615 million last year, primarily reflecting lower net provisions related to the credit card portfolio.
Operating expenses were $8.53 billion for the second quarter, edging down from last year, reflecting significantly lower impairments related to consolidated real estate investments, nearly offset by higher compensation and benefits expenses as well as higher transaction based expenses.
Net revenues for the quarter grew 17% to $12.73 billion from $10.90 billion in the same quarter last year, reflecting higher net revenues in Global Banking & Markets and Asset & Wealth Management. Analysts expected revenue of $11.40 billion for the quarter.
Net interest income increased 33% to $2.24 billion and total non-interest revenues improved 14% to $10.49 billion from last year.