OREANDA-NEWS. The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $7.93 billion and net earnings of $1.82 billion for the second quarter ended June 30, 2016. Diluted earnings per common share were $3.72 compared with $1.98 for the second quarter of 2015 and $2.68 for the first quarter of 2016. Annualized return on average common shareholders’ equity (ROE) (1) was 8.7% for the second quarter of 2016 and 7.5% for the first half of 2016.

Highlights

 Goldman Sachs ranked first in worldwide announced and completed mergers and acquisitions for the year-to-date. (2)  Debt underwriting produced net revenues of $724 million, its second highest quarterly performance.  Assets under supervision (3) increased to a record $1.31 trillion.  Book value per common share increased by 2% during the quarter to $176.62.  The firm maintained strong capital ratios and liquidity. As of June 30, 2016, the firm’s Common Equity Tier 1 ratio (4) as calculated in accordance with the Standardized approach and the Basel III Advanced approach was 13.7% (5) and 12.2% (5), respectively. In addition, the firm’s global core liquid assets (3) were $211 billion (5) as of June 30, 2016. 

“Despite the uncertainty created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer.

Investment Banking

Net revenues in Investment Banking were $1.79 billion for the second quarter of 2016, 11% lower than the second quarter of 2015 and 22% higher than the first quarter of 2016. Net revenues in Financial Advisory were $794 million, 3% lower compared with a strong second quarter of 2015, reflecting a decrease in industry-wide completed mergers and acquisitions. Net revenues in Underwriting were $993 million, 17% lower compared with a strong second quarter of 2015, due to significantly lower net revenues in equity underwriting, primarily reflecting a significant decline in industry-wide activity. Net revenues in debt underwriting were significantly higher compared with the second quarter of 2015, reflecting significantly higher net revenues from asset-backed activity. The firm’s investment banking transaction backlog decreased compared with both the end of the first quarter of 2016 and the end of the second quarter of 2015.