The Ups and Downs of Goldman Sachs Two Quarters

first_img The Ups and Downs of Goldman Sachs Two Quarters Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / The Ups and Downs of Goldman Sachs Two Quarters The first and second quarters of 2016 told two different stories for Goldman Sachs as far as earnings and overall business operations: in the first quarter, everything was down; in the second quarter, everything is back up.According to the investment banking firm’s Q2 2016 earnings report released Tuesday, Goldman Sachs reported net earnings of $1.82 billion for Q2—an increase from $1.14 billion in the first quarter and from $1.05 billion in Q2 2015. Diluted earnings per common share in Q2 were $3.72, compared to $1.98 in the year-ago quarter and $2.68 for Q1 2016.Whereas challenges presented headwinds to nearly all of Goldman Sachs’ businesses in Q1, things ran somewhat more smoothly in Q2. There were still challenges in Q2 however; low interest rates, political uncertainty about global growth continued to pose challenges to Goldman Sachs’ Fixed Income, Currency, and Commodities Client Execution segments.“Despite the uncertainty created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently,” said Lloyd C. Blankfein, Chairman and CEO of Goldman Sachs.Also, Goldman Sachs announced in January that it had agreed to a $5 billion settlement in April with the Department of Justice over the sales of toxic mortgage-backed securities prior to the crisis; the settlement was made final in April. The firm reported net earnings of only $765 million in the fourth quarter of 2015 immediately after making the announcement about the settlement.A major difference in the earnings of Goldman Sachs between the second quarter a year ago and Q2 this year was lower net provisions for litigation and regulatory proceedings for Q2 this year ($126 million). Last year during the second quarter, the firm recorded $1.45 billion in net provisions for mortgage-related litigation and other regulatory matters. Non-compensation expenses were $2.14 billion in the second quarter, a decline of 40 percent from Q2 2015 (and an increase of 2 percent from Q1 2016).“The decrease compared with the second quarter of 2015 primarily reflected significantly lower net provisions for mortgage-related litigation and regulatory matters, which are included in other expenses,” the Q2 earnings report stated. “In addition, market development expenses were lower compared with the second quarter of 2015.”Click here to see Goldman Sachs’ complete Q2 earnings report. July 19, 2016 1,715 Views Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, TX. Born and raised in Texas, Kendall now works as the online editor for DS News. About Author: Kendall Baer Demand Propels Home Prices Upward 2 days ago Previous: Distressed Sales May Reach “Normal” By 2017 Next: Clayton Holdings Creates New Option for ‘Fix and Flip’ Lending Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, News Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Tagged with: Earnings Goldman Sachs Mortgage-Backed Securities Profitscenter_img The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Share Save Servicers Navigate the Post-Pandemic World 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Earnings Goldman Sachs Mortgage-Backed Securities Profits 2016-07-19 Kendall Baer Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

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