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Goldman Sachs (GS) reported second quarter earnings that beat expectations on both revenue and profit fronts. The major bank posted revenue of $12.73 billion, surpassing estimates of $12.39 billion and marking a 17% year-over-year increase. Adjusted earnings per share came in at $8.62 per share, beating projections of $8.36.
Citizens JMP Managing Director & Director of Financial Technology Research Devin Ryan joins The Morning Brief to dissect these results.
Ryan highlights a "common thread" of strong performance in capital market businesses, with asset and wealth management firms showing particular strength. However, he notes a mixed picture in the overall banking sector regarding net interest income (NII). While acknowledging the positive start in capital markets (^DJI, ^IXIC, ^GSPC), Ryan emphasizes, "I think we're still in the early days of a recovery in capital markets. So good to see the start, but I think there's a lot more to go here."
Addressing fixed income performance, Ryan observes: "Fixed income and equities trading have been more resilient than we would've thought heading into the year." He further notes that as issuance and M&A activity pick up, this sector still has "room to grow."
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This post was written by Angel Smith