Goldman Sachs reported on Wednesday (July 15) that consumer deposits grew by a record $20 billion to $92 billion during the second quarter as the bank continued to expand its digital consumer platforms.
Goldman said in announcing its latest quarterly earnings that the firm “continued to support Marcus and Apple Card consumers during the quarter, and extended the flexibility to defer payments without incurring any charges for the Apple Card through July 2020.”
The company also said consumer banking net revenues rose 19 percent year over year to $258 million thanks to gains from the addition of credit card loans.
Meanwhile, Goldman reported that investment banking brought in a record $2.66 billion in quarterly net revenues. Similarly, the company said its Fixed Income, Currency and Commodities unit generated $4.24 billion in net revenues, marking “its highest quarterly performance in nine years, reflecting continued strong client activity in intermediation and financing.”
Chairman and CEO David Solomon said in a statement that Goldman’s “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.”
The CEO added that “while the economic outlook remains uncertain, I am confident that we will continue to be the firm of choice for clients around the world who are looking to reshape their businesses and rebuild a more resilient economy.”
Still, Goldman raised its provision for credit losses to $1.59 billion during the quarter, up from $214 million in 2019’s second quarter and $937 million in 2020’s first period.
“The increase compared with the second quarter of 2019 was primarily due to significantly higher provisions related to wholesale loans and to a lesser extent consumer loans, reflecting revisions to forecasts of expected deterioration in the broader economic environment,” the firm said. All told, Goldman’s total allowance for credit losses stood at $4.39 billion as of June 30.
As for its overall results, Goldman reported $6.26 of diluted earnings per share for the second quarter on $13.3 billion of net revenues. That beat analysts’ estimates of $3.78 in EPS and $9.73 billion of revenue.
Selected by Fintech Tube