Goldman Sachs Sees 23% YoY Decline in 2022 Q2 Net Income

The Goldman Sachs Group, Inc. (NYSE: GS) on Monday released its financial results for the second quarter (Q2 2022) ended June 30, 2022, showing net revenues of $11.86 billion during the period, 23% lower than a strong second quarter of 2021 (Q2 2021) and 8% lower than the first quarter of 2022 (Q1 2022). 

According to the report, net earnings for Q2 2022 were $2.93 billion. Net revenues were $24.80 billion and net earnings were $6.87 billion for the first half of 2022 (H1 2022).

Diluted earnings per common share (EPS) was $7.73 for Q2 2022 compared with $15.02 for Q2 2021and $10.76 for Q1 2022, and was $18.47 for H1 2022 compared with $33.64 for H1 2021.

Annualized return on average common shareholders' equity (ROE)1 was 10.6% for Q2 2022 and 12.8% for H1 2022. Annualized return on average tangible common shareholders' equity (ROTE)1 was 11.4% for Q2 2022 and 13.6% for H1 2022. 

Financial Highlights in Q2 2022

• During the quarter, the firm continued to support clients amid an evolving macroeconomic environment and generated solid quarterly net revenues of $11.86 billion, net earnings of $2.93 billion and diluted EPS of $7.73.

• Investment Banking generated quarterly net revenues of $2.14 billion, including strong net revenues in Financial advisory. The firm ranked #1 in worldwide announced and completed mergers and acquisitions and in worldwide equity and equityrelated offerings and common stock offerings for the year-to-date.

• Global Markets generated quarterly net revenues of $6.47 billion, reflecting strong performances in both Fixed Income, Currency and Commodities (FICC) and Equities, particularly in financing.

• Consumer & Wealth Management generated record quarterly net revenues of $2.18 billion, 25% higher than Q2 2021.

• Firmwide assets under supervision3,4 increased $101 billion during the quarter, including inflows of $305 billion from the acquisition of NN Investment Partners (NNIP)5, to a record $2.50 trillion. Firmwide Management and other fees were a record $2.23 billion for Q2 2022, 22% higher than Q2 2021.

• Book value per common share increased by 2.9% during the quarter and 6.2% during H1 2022 to $301.88.

• ​On July 14, 2022, the Board of Directors of The Goldman Sachs Group, Inc. approved a 25% increase in the quarterly dividend to $2.50 per common share beginning in the third quarter of 2022.