Goldman Sachs NYSE: GS bankowość inwestycyjna

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The blue-chip Dow slid on Tuesday as Goldman Sachs (NYSE:GS) fell 2.5% after Chief Executive David Solomon said the bank is considering "strategic alternatives" for its consumer business, while the tech-heavy Nasdaq stayed afloat.

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Latest Release
Apr 18, 2023

EPS / Forecast
8.79 / 8.24

Revenue / Forecast
12.22B / 12.83B

Goldman Sachs profit falls on sluggish deals and bond trading, Marcus loss

NEW YORK (Reuters) -Goldman Sachs Group Inc's profit fell 19% as dealmaking and bond trading slumped in the first quarter and it lost money on the sale of some assets in its consumer business.

Shares declined after Chief Executive David Solomon outlined further plans to scale down Marcus, the consumer business he once championed, and Goldman's results lagged major Wall Street peers for a second quarter in a row.

Investment banking activity remains extremely muted, and while there are some green shoots emerging, clients remain cautious, Solomon said in a post-earnings call.

"Recent events in the banking sector are lowering growth expectations, and there is a higher risk of credit contractions given the environment is limiting banks' appetite to extend credit," Solomon told analysts.

Investor confidence in the banking sector was shaken in March after Silicon Valley Bank and Signature Bank (OTC:SBNY) failed, two of the largest collapses in U.S. banking history. The Federal Reserve's efforts to tame inflation through aggressive interest rate increases have also raised concerns about an economic downturn.

Goldman booked a $470 million loss on the sale of some loans from Marcus, dragging down first quarter results. The bank also released $440 million from its reserves to soften the hit from its consumer loan portfolio.

Goldman sold $1 billion worth of loans from its Marcus portfolio and plans to further reduce the portfolio, Chief Financial Officer Denis Coleman told analysts.

"Goldman got into the consumer business at the wrong time shortly before the downturn, and they are re-imagining parts of the business by getting out of lending and focusing on deposits," Stephen Biggar, an analyst at Argus Research, told Reuters. "It just puts Goldman in kind of an awkward space in the consumer market."

The bank's net profit applicable to common shareholders fell to $3.09 billion in the quarter, compared with $3.83 billion a year earlier, while earnings per share slid to $8.79 from $10.76 last year, it said on Tuesday.

Excluding onetime costs, the Wall Street heavyweight earned $9.87 per share, exceeding the analysts' average estimate of $8.10 per share, according to Refinitiv data.

Its stock fell 1.7% to $333.91 in afternoon trading.

Global mergers and acquisitions activity shrank to the lowest level in more than a decade in the first quarter, according to data from Dealogic. That hurt Goldman's investment banking fees, which dropped 26% to $1.58 billion.

Revenue from fixed income, currency and commodities (FICC) trading, usually a bright spot, plunged 17% to $3.93 billion, while equity trading revenue sank 7% to $3.02 billion.

"The revenue shortfall versus our expectations came mainly on FICC trading and equity investments, which are of course both relatively volatile," Chris Kotowski, a banking analyst at Oppenheimer & Co, wrote in a note.

Revenue in Goldman's asset and wealth management unit rose 24% to $3.2 billion. Still, that reflected a 10% decline from the end of the fourth quarter last year.

Net revenue fell 5% to $12.22 billion in the first quarter.

Goldman is exploring strategic options for its consumer platform business, which has lost about $3 billion in three years, executives told investors in February. It's also considering a sale for GreenSky, a fintech business that it bought for more than $2 billion in 2021.

But deposits held in the Marcus business remain core to Goldman and are not under review, a source familiar with the matter had told Reuters earlier this year.

Goldman reshuffled its main divisions in 2022, shifting the focus back to its traditional mainstays of trading and investment banking, beefing up its asset management arm and stepping back from its consumer aspirations.

Rival Morgan Stanley (NYSE:MS), which has diversified its business by concentrating on wealth management, reports results on Wednesday.

Goldman's lackluster trading results contrast with those of Bank of America Corp (NYSE:BAC), which also reported earnings on Tuesday. BofA's profit beat analysts' estimates after its bond traders had their best quarter in a decade.

"Goldman was uncharacteristically weak in trading compared to other banks and it is unlikely to continue at the first quarter pace, so we can expect some more softening in performance," Biggar added.

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Goldman Sachs rozważa ponoć zakończenie współpracy z Apple. Amerykański bank inwestycyjny miałby scedować to partnerstwo na American Express, o czym jako pierwsza poinformowała redakcja The Wall Street Journal. Strony nie skomentowały tych doniesień.

https://www.cashless.pl/13866-goldman-s ... two-koniec

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Goldman Sachs will hike by 10% to $2.75 quarterly $GS

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Goldman Sachs is about to report its worst quarterly earnings in years - Semafor

(Reuters) - Goldman Sachs (NYSE:GS) will report its worst quarterly earnings in years next week, with a return on equity in the low single digits, Semafor reported on Thursday citing people familiar with the matter.

Writedowns on Goldman's GreenSky consumer-lending business and on holdings of commercial real estate, are likely to exceed $2 billion, the report added.

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Goldman Sachs
Goldman Sachs (NYSE:GS) w środę powiedział Zysk na akcję spadł o 60% do 3,08 USD w II kwartale, rozmijając się z szacunkami, przy niższych przychodach w wysokości 2,10 mld USD, które przekroczyły konsensus.

Mimo to akcje wzrosły o 1% w środowym handlu.

Wyniki zostały przypisane jednorazowym opłatom związanym z grupą pożyczkową GreenSky giganta bankowego oraz stratom na portfelach kredytów konsumpcyjnych i nieruchomości. Czołowi przedstawiciele firmy już wcześniej ostrzegali, że będzie to trudny kwartał.

Opłaty za bankowość inwestycyjną również spadły o 20% do 1,43 mld USD, a przychody z handlu instrumentami o stałym dochodzie, walutą i towarami spadły o ponad jedną czwartą.

Podobnie jak niektórzy z jego rywali bankowych, działalność inwestycyjna i handlowa Goldmana ucierpiała z powodu spowolnienia transakcji, a następnie serii podwyżek stóp procentowych przez Rezerwę Federalną, które wywarły presję na gospodarkę USA.

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Goldman Sachs (NYSE:GS) stock fell 0.4% after Citigroup downgraded the investment bank to ‘Neutral’ from ‘Buy,’ saying its targets will take time to be achieved.

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Goldman Sachs upgraded to Neutral
Atlantic Equities upgraded Goldman Sachs (NYSE:GS) to Neutral from Underweight and raised its price target to $350.00 from $330.00.

The firm remarked that despite the weak Q2 last month, with EPS down by 60% compared to the previous year, there were positive indicators for Goldman Sachs, such as a 22% year-over-year growth in Equities financing, continued robust growth in Platform Solutions revenues, and effective expense control (excluding impairments).

The strength in the S&P 500 YTD also provides a better jumping-off point for asset management revenues in Q3.

Shares ticked up 0.5% on Tuesday to $357.72.

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(Reuters) - Goldman Sachs' profit fell in the third quarter, weighed down by a writedown on its GreenSky fintech business and its investments in real estate.

The Wall Street giant reported net profit of $2.06 billion, or $5.47 per share, for the three months ended Sept. 30, it said on Tuesday. That was lower than $3.07 billion, or $8.25 per share, a year ago.

Shares of the bank dipped 0.4% in premarket trading.

Goldman's ill-fated foray into consumer banking proved costly, losing $3 billion over three years.

CEO David Solomon has shifted the firm's focus back to its traditional strengths - investment banking and trading, and aims to grow in asset and wealth management.

The bank took a $506 million writedown on GreenSky, adding to a $1.4 billion hit linked to the business in the second quarter.

GreenSky, which facilitates home improvement loans for consumers, was sold to a consortium of investment firms led by Sixth Street Partners.

It was bought for $1.7 billion last year although it was valued at $2.2 billion when the deal was first announced in 2021.

Real estate investments were another drag on earnings as the bank booked an impairment charge of $358 million. That weighed on revenue from its asset and wealth management unit, which slipped 20% to $3.23 billion.

But investment banking offered some hope as fees at $1.55 billion was largely unchanged from last year as debt underwriting activity resumed and the market for initial public offerings picked up.

"I also expect a continued recovery in both capital markets and strategic activity if conditions remain conducive," CEO Solomon said in a statement.

Investment banking results have been mixed for peers, with JPMorgan Chase (NYSE:JPM) reporting a 6% decline in revenue, while Citigroup (NYSE:C) said fees jumped 34%.