Goldman Sachs Q2 Results Top Estimates; Boosts Dividend 33%

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(RTTNews) - Goldman Sachs Group, Inc. (GS) reported Wednesday that net profit for the second quarter increased 20 percent from last year, reflecting significantly lower provisions for bad loans and 15 percent revenue growth. Both earnings per share and quarterly revenues topped analysts' expectations. The company also declared a 33 percent higher quarterly dividend.

"Our strong results for the quarter reflected healthy client activity levels across our businesses, our differentiated franchise positions and the talent and commitment of our people," said David Solomon, Chairman and CEO.

For the quarter, net earnings applicable to common shareholders increased to $3.47 billion or $10.91 per share from $2.89 billion or $8.62 per share in the prior-year quarter.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $9.68 per share for the quarter. Analysts' estimates typically exclude special items.

Provision for credit losses for the quarter surged 36 percent to $384 million from $282 million last year, primarily reflecting net charge-offs related to the credit card portfolio and growth in the credit card and wholesale portfolios.

Operating expenses were $9.24 billion for the second quarter, up 8 percent from last year, reflecting higher compensation and benefits expenses and higher transaction based expenses, partially offset by lower net provisions for litigation and regulatory proceedings.

Net revenues for the quarter grew 15 percent to $14.58 billion from $12.73 billion in the same quarter last year, reflecting significantly higher net revenues in Global Banking & Markets, partially offset by slightly lower net revenues in Asset & Wealth Management. Analysts expected revenue of $13.54 billion for the quarter.

Net interest income surged 56 percent to $3.10 billion and total non-interest revenues improved 7 percent to $11.48 billion from last year.

Net revenues in Global Banking & Markets were $10.12 billion for the quarter, up 24 percent from the previous year.

Net revenues in Asset & Wealth Management were $3.78 billion, 3 percent lower than the prior year, reflecting significantly lower net revenues in both Equity investments and Debt investments, partially offset by higher Management and other fees.

Net revenues in Platform Solutions were $685 billion, 2 percent higher than last year, reflecting improved net revenues in Consumer platforms.

On Monday, the Board of Directors of The Goldman Sachs Group, Inc. increased the quarterly dividend by 33 percent to $4.00 per common share from $3.00 per common share, payable on September 29, 2025 to common shareholders of record on August 29, 2025.

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