Goldman Sachs Group Inc. (NYSE: GS) on Tuesday reported better-than-expected revenue and earnings as the Company also named a new CEO.
The Company said net revenue rose 19% to USD 9.4 Billion in the second quarter ended June 30, 2018, beating analysts’ estimates of USD 8.74 Billion.
Second quarter net income was USD 2.57 Billion. Earnings per share were USD 5.98, compared with USD 3.95 per share for the same period in 2017. Analysts polled by Thomson Reuters had projected earnings of USD 4.66 per share.
“Solid performance across all of our major businesses drove the strongest first-half returns in nine years. With a healthy economic backdrop and deep client franchises, the firm is well-positioned to invest in attractive opportunities to meet the needs of our clients and continue to generate earnings growth.” Lloyd C. Blankfein, Chairman and Chief Executive Officer, said.
The better-than-expected revenue is driven by its Investing & Lending division and Investment Management division. Net revenue in Investing & Lending rose 23% to USD 1.94 Billion in the second quarter, while revenue in Investment Management jumped 20% to USD 1.84 Billion.
However, the bank’ shares fell 1.55% to USD 227.5 in the trading on Tuesday.
The Company also announced that current Chairman and Chief Executive Officer Lloyd C. Blankfein will retire and David M. Solomon is named to become the new Chairman and CEO.
“I want to express my deep appreciation for the opportunity to work with and benefit from so many talented and dedicated colleagues,” said Mr. Blankfein.