- Goldman Sachs Q2 23 – 19/07 – share price wise it's not been a good 6-months for Goldman Sachs, with the shares down near their lowest levels this year, with all the optimism over higher rates at the end of last year, the entire banking sector has become susceptible to concerns over the wider impact when it comes to economic stability. When the bank reported in January there was a mixed reaction to the numbers. For the second quarter in succession revenues came in below expectations when the company reported in Q1, coming in at $12.22bn, although profits were above forecasts at $8.79c a share. Q4 revenues came in at $10.59bn, below expectations of $10.7bn. On the various business units, equities trading revenue fell 7% to $3.02bn, while FICC slipped back to $3.93bn, a fall of 17% from a year ago. Investment banking was also disappointing, falling 26% to $1.58bn. The bank also announced that it was selling its GreenSky unit, as it looks to withdraw from its foray into retail banking. The partial sale of its Marcus loan portfolio incurred a loss of $470m, with the rest of the loans set aside to be offloaded at a later date. The bank's costs also went up during Q1, rising to $8.4bn, and this is an area which the bank is struggling to come to terms with, along with what to do about its struggling retail business which is acting as a drag on profitability. As we look towards this week's Q2 numbers, revenues are expected to fall to $10.75bn and profits forecast to slide to $4.72c a share, with the focus remaining very much on the guidance for Q3, after last week's warning that profits and revenues are likely to be lower than expected.
