This Tuesday Goldman Sachs has reported its financial results for the second quarter of its 2019 fiscal year ended June 30, 2019, revealing 5.6 per cent fall in quarterly profit.
For the second quarter of 2019, the recorded net revenues of $9.46 billion. This is lower by 2 per cent when measuring it against the same quarter of last year, and 7 per cent higher than the first quarter of 2019.
Net earnings came in at $2.42 billion for the second quarter or $4.67 billion year-to-date. When comparing Q2’s results quarter-on-quarter, it is higher by 7.5 per cent. However, on a yearly comparison, it is lower by 5.6 per cent.
Revenues were largely dragged down due to a sluggish performance in the fixed-income unit of the Group, as well as weakness in debt underwriting.
FICC revenues drag down results
Net revenues in Institutional Client Services, which includes revenues generated from Fixed Income, Currency and Commodities (FICC), was $3.48 billion for the second quarter of 2019. This is 3 per cent lower than the second quarter of 2018 and 4 per cent lower than the first quarter of 2019.
Taking an even closer look, the net revenues for the FICC Client Execution were $1.47 billion. Against the second quarter of 2018, it’s lower by 13 per cent. This reflects significantly lower net revenues in interest rate products and currencies as well as lower net revenues in credit products, the statement said.
However, this lacklustre performance was partially offset by higher net revenues in commodities and mortgages. As pointed out by Goldman Sachs, the second quarter was categorised by low volatility and low client activities.
Looking ahead, Goldman Sachs will: “Remain focused on expanding our addressable market and broadening client relationships while investing in automation and platforms to improve efficiency.”
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