MS - Goldman Sachs Morgan Stanley and Bank of America Continued The Strong Trend With Their Second Quarter Financials | Benzinga
On Monday, bank earnings continued with The Goldman Sachs Group Inc (NYSE: GS), also joining the trend of topped profit and revenue estimates on the back of better-than-expected fixed income results and smaller-than-expected loan loss provisions. On Tuesday, Morgan Stanley (NYSE: MS) and Bank of America (NYSE: BAC) boarded the bank earnings train. Morgan Stanley topped profit and revenue estimates with its second quarter financials on the back of stronger-than-expected trading and investment banking performance. Bank of America also topped estimates with second-quarter revenue and profit that were fueled by rising investment banking and asset management fees.
Goldman Sachs Justified The High Expectations
Out of the six biggest banks, Goldman is the most reliant on investment banking and trading to generate revenue and therefore, expectations were high with the rebound in Wall Street activity. For the quarter ended on June 30th, revenue grew 17% to $12.73 billion on the back of core trading, advisory, as well as asset and wealth management operations, surpassing Wall Street’s $12.46 billion estimate. Prrofit surged 150% YoY to $3.04 billion, or $8.62 per share; but last year’s financials were dragged down by hamstrung by write-downs from commercial real estate and the sale of a consumer business.
Fixed income was one of the highlights with revenue jumping 17% to $3.18 billion, surassping StreetAccount’s ...