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Goldman Sachs down 1% after Q2 earnings results

Published 16/07/2015, 09:42 pm
© Reuters.  Goldman Sachs profit falls on litigation charge
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Investing.com - Goldman Sachs (NYSE:GS) shares declined in pre-market trade on Thursday, following the release of disappointing quarterly earnings results.

The largest U.S. investment bank said earnings per share came in at $4.75 in the three months ended June 30, easily surpassing expectations for earnings of $3.84 a share and up from $4.10 a share a year earlier.

During the quarter, the firm recorded $1.45 billion in net provisions for mortgage-related litigation and regulatory matters. These provisions reduced diluted earnings per common share for the second quarter of 2015 by $2.77.

The firm’s second quarter revenue totaled $9.07 billion, down 0.5% from the same period a year earlier but beating estimates for revenue of $8.78 billion.

Goldman Sachs reported its highest first half net revenues in five years, reflecting record first half results in Investment Banking and Investment Management.

Investment Banking produced net revenues of $2.02 billion, reflecting the second highest quarterly performance in Underwriting and strong net revenues in Financial Advisory.

"We are pleased with our performance for the quarter," said Lloyd C. Blankfein, Chairman and Chief Executive Officer.

Shares of Goldman Sachs were down 0.95% in pre-market trade at $211.00 from Wednesday's closing price of $213.03.

Meanwhile, U.S. stock futures pointed to a modestly higher open. The Dow futures pointed to a gain of 0.35%, the S&P 500 futures tacked on 0.4%, while the Nasdaq 100 futures advanced 0.45%.

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