Goldman Sachs revenue increased by 16% in Q2, beats analysts estimate

Goldman Sachs Group Inc.'s earnings increased significantly in the second quarter, as increasing economic growth and market gains boosted several of the Wall Street businesses. 

Total net revenue increased by 16% to $15.39 billion, while diluted profits per common share of $15.02 exceeded forecasts of $10.24, according to Refinitiv's IBES estimate.

The bank's asset management division's net revenue more than doubled to $5.1 billion, owing to greater earnings from equity investments.

Investment Banking net revenues were $3.61 billion in the second quarter of 2021, 36% higher than the second quarter of 2020 and 4% lower than a strong first quarter of 2021.

The rise represented considerably greater net revenues in Financial advising and Corporate lending, as well as higher net revenues in Underwriting, as compared to the second quarter of 2020.

According to Refinitiv, Goldman has comfortably maintained its top place in the league tables for global M&A advising. The league tables provide value to financial services businesses based on the amount of M&A fees they produce.

Global Markets produced $4.90 billion in net revenue for the quarter, including strong client activity in Fixed Income, Currency and Commodities (FICC), and Equities.

Asset Management earned record quarterly net revenues of $5.13 billion, mostly from equity investments while Consumer & Wealth Management produced $1.75 billion in net sales in the fourth quarter, a new high.

The New York-based bank stated that its board of directors has authorized a projected 60% increase in the quarterly dividend to $2 per share commencing in the third quarter.

The shares of the bank are trading at $373.5.