Goldman Sachs witnessed a 41% jump in its total net revenues in Q2 2020 at $13.29bn from the figure of $9.46bn reported in Q2 2019

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Headquarters of Goldman Sachs. (Credit: Z4dude/Wikipedia.org)

The Goldman Sachs Group has announced net earnings of $2.42bn, or diluted earnings per common share of $6.26, in the second quarter of 2020 that ended 30 June 2020.

The Q2 2020 profit is nearly the same as reported in the second quarter of 2019. However, the diluted earnings per common share in Q2 2019 were $5.81.

In the first quarter of 2020, the US investment bank had net earnings of $1.21bn.

Goldman Sachs had a 41% jump in its total net revenues in Q2 2020 at $13.29bn from the figure of $9.46bn reported in the same quarter in the previous year.

The US banking major attributed the increased net revenues in the second quarter to the significantly higher net revenues made in its global markets and investment banking operations and also increased net revenues in consumer and wealth management. These were offset slightly by reduced net revenues in asset management, said the bank.

In the investment banking unit, net revenues increased by 36% to $2.66bn in Q2 2020 compared to the second quarter of the previous year. On the other hand, the global markets business witnessed a 93% growth in net revenues at $7.18bn in the reported quarter compared to Q2 2019.

The asset management unit made net revenues of $2.1bn in Q2 2020 for the second quarter of 2020, which is 18% down from the $2.55bn earned during the second quarter of 2019.

Net revenues in Goldman Sachs’s consumer and wealth management saw a 9% increase in Q2 2020 at $1.36bn compared to the same quarter in the previous year.

The operating expenses in the second quarter of 2020 increased by 37% to $8.4bn compared to $6.1bn incurred in Q2 2019.

Goldman Sachs said that the Covid-19 pandemic continued to affect the operating environment during the second quarter, thereby slowing down global economic activity besides leading to elevated market volatility.

Goldman Sachs CEO comments on the Q2 2020 results

Goldman Sachs chairman and CEO David Solomon said: “This quarter demonstrated the continued dedication of the people of Goldman Sachs to helping our clients navigate a very challenging environment, while working remotely or returning to offices that are quite different than the ones we left earlier in the year.

“We also continue to be grateful for those working hard to contain the pandemic and limit its human and economic costs.

“Our strong financial performance across our client franchises demonstrates the inherent benefits of our diversified business model. The turbulence we have seen in recent months only reinforces our commitment to the strategy we outlined earlier this year to investors.”

For the first half of 2020, the banking group’s net revenues were $22.04bn, while the net earnings were $3.64bn.