Goldman Posts Flat Second-Quarter Profit
July 15 2020 - 8:15AM
Dow Jones News
By Liz Hoffman
Goldman Sachs Group Inc.'s quarterly profit held steady from a
year ago, bucking larger commercial banks that saw earnings plummet
as the coronavirus tore through the U.S. economy.
The bank's profit of $2.4 billion was far better than expected
and reflects a flood of corporate fundraising and torrid trading
markets, offset slightly by higher reserves for expected loan
defaults in what is expected to be a sustained and deep
recession.
Quarterly revenue was the second-highest on record at $22
billion, a sign that Goldman -- with a smaller lending footprint
than giant commercial banks -- has weathered this leg of the storm
in better shape than rivals.
The bank set aside $1.6 billion for loan losses, sharply higher
than in the first quarter, which included only a few weeks of the
virus's toll. Stock analysts had expected Goldman to earn $1.12
billion, or $3.90 a share. Shares rose 2.5% in premarket
trading.
The second quarter was banks' biggest test in more than a
decade. Unemployment soared, companies lined up for cash and
executives spun up models to see how their businesses would fare in
what is likely to be a deep, and possibly sustained, downturn.
Write to Liz Hoffman at liz.hoffman@wsj.com
(END) Dow Jones Newswires
July 15, 2020 08:00 ET (12:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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