Goldman Sachs Q2 Assets Under Supervision Hit Record, Net Interest Income Surges 56%

Goldman Sachs Group Inc. GS shares traded higher Wednesday after the firm reported second-quarter results that beat analyst expectations, boosted by robust gains in its global banking and trading divisions.

Net revenue rose 15% year over year to $14.58 billion, topping the consensus estimate of $13.36 billion, though it declined 3% from the prior quarter.

GAAP earnings came in at $10.91 per share, up from $8.62 a year ago and above the $9.48 consensus. First-half EPS rose to $25.07 from $20.21 a year earlier.

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Provision for credit losses increased to $384 million, compared with $282 million a year ago and $287 million last quarter, driven by credit card charge-offs and portfolio growth.

Segment Highlights

• Global Banking and Markets revenue jumped 24% to $10.12 billion, led by a 26% rise in investment banking fees and strong performance in FICC (up 9%) and equities (up 36%).
• Asset and Wealth Management revenue declined 3% to $3.78 billion due to lower returns from equity and debt investments, partially offset by higher fees and lending income. Wealth management client assets totaled approximately $1.7 trillion.
• Platform Solutions revenue edged up 2% to $685 million, as gains in consumer platforms were offset by softer transaction banking results.

Operating expenses climbed 8% to $9.24 billion, driven by higher compensation and transaction-based costs. The firm's efficiency ratio improved to 62.0% for the first half, down from 63.8% a year ago.

Other Key Metrics

• Assets Under Supervision (AUS) hit a record $3.29 trillion, up $120 billion in the quarter, aided by market appreciation and $5 billion in net inflows.
• Loans rose quarter over quarter, with an average balance of $215 billion. Loan loss reserves totaled $5.29 billion, split between wholesale ($2.82 billion) and consumer ($2.47 billion).
• Net Interest Income surged 56% to $3.10 billion, driven by lower funding costs, on $1.65 trillion in average interest-earning assets.

Goldman returned $3.96 billion to shareholders during the quarter, including $3 billion in buybacks and $957 million in dividends.

On July 14, the Board increased the quarterly dividend to $4.00 per common share from $3.00, payable on September 29, 2025, to common shareholders of record on August 29, 2025.

The firm's Standardized CET1 capital ratio stood at 14.5%, while the Advanced CET1 ratio declined to 15.5%. Return on average common equity was 12.8% for the quarter and 14.8% for the first half. Book value per share rose 1.6% to $349.74 in the second quarter, up 3.9% year to date.

David Solomon, Chairman and CEO of Goldman Sachs, commented, "At this time, the economy and markets are generally responding positively to the evolving policy environment. But as developments rarely unfold in a straight line, we remain very focused on risk management. Given the strategic decisions and investments we've made, we continue to believe that the firm is well-positioned to perform for our shareholders."

Price Action: GS shares were up 0.78% at $708 in premarket trading on Wednesday at last check.

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