Goldman Sachs' Q2 Profits Tumble Due To Tepid M&A Activity: Performance By The Numbers

Goldman Sachs Group Inc GS reported Q2 EPS of $3.08, which plunged 60% Y/Y, missing the consensus of $3.18.

Net revenues were $10.90 billion, 8% lower than the second quarter of 2022 and 11% lower than the first quarter of 2023, reflecting lower net revenues in Global Banking & Markets and slightly lower net revenues in Asset & Wealth Management, partially offset by higher net revenues in Platform Solutions.

Global Banking & Markets net revenues were $7.19 billion, down 14% Y/Y and 15% lower sequentially.

Investment banking fees were $1.43 billion, 20% lower than in the second quarter of 2022, primarily due to significantly lower net revenues in Advisory, reflecting a significant decline in industry-wide M&A activity. 

The Wall Street giant took a writedown of $504 million tied to its GreenSky business and $485 million related to its consolidated real estate investments.

Greensky, a fintech platform for home improvement consumer loan originations, was acquired by Goldman in September 2021 in a $2.24 billion stock deal that closed a year ago.

In April, Goldman Sachs CEO said the company initiated a process to assess the sale Of GreenSky.

Goldman's asset and wealth management unit brought in 4% lower revenue than last year, hurt by losses from real estate investments.

The sale of "substantially all of the remaining" Marcus loans portfolio also resulted in a gain of $100 million for Goldman.

Price Action: GS shares are down 1.56% at $332 during the premarket session on the last check Wednesday.