The Goldman Sachs Group reported net revenues of $9.07 billion, net earnings of $1.05 billion and diluted earnings per common share of $1.98 for the second quarter ended June 30, 2015.
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Annualized return on average common shareholders’ equity (ROE) was 4.8% for the second quarter of 2015 and 9.7% for the first half of 2015. During the quarter, the firm recorded $1.45 billion in net provisions for mortgage-related litigation and regulatory matters.
These provisions reduced diluted earnings per common share for the second quarter of 2015 by $2.77, and reduced annualized ROE for the second quarter of 2015 and the first half of 2015 by 6.7 and 3.4 percentage points, respectively.
Goldman Sachs reported its highest first half net revenues in five years, reflecting record first half results in Investment Banking and Investment Management.
The firm ranked first in worldwide announced and completed mergers and acquisitions for the year-to-date, and also ranked first in worldwide equity and equity-related offerings and common stock offerings for the year-to-date.
Investment Banking produced net revenues of $2.02 billion, reflecting the second highest quarterly performance in Underwriting and strong net revenues in Financial Advisory.
Investment Management generated strong net revenues of $1.65 billion, its second highest quarterly performance, as assets under supervision increased to a record level.
Equities net revenues were $4.32 billion for the first half of 2015, its highest first half performance in six years.
Book value per common share and tangible book value per common share of $169.33 and $160.11, respectively, were both essentially unchanged compared with the end of the first quarter of 2015 and 4% higher compared with the end of 2014, despite the net provisions for mortgagerelated litigation and regulatory matters recorded during the quarter.
The firm continues to maintain strong capital ratios and liquidity. As of June 30, 2015, the firm’s Common Equity Tier 1 ratio as computed in accordance with both the Standardized approach and the Basel III Advanced approach was 11.8% and 12.5%, respectively.
In addition, the firm’s global core liquid assets were $189 billion as of June 30, 2015. ■