Goldman Sachs reported a record $7.42 billion in equities revenue for the second quarter, a 72% surge that handily topped estimates and drove the firm's overall performance. Investment banking revenue rose 55% to $3.4 billion, including fees from SpaceX's IPO and a $25 billion bond sale, while FICC revenue climbed 32% to $4.6 billion. The Global Banking & Markets division, which houses these businesses, generated $15.5 billion in revenue, accounting for over 75% of the bank's total. Kevin Kelly, global co-head of client coverage for Global Banking & Markets and global co-head of equities, attributed the growth to strong equity markets, resilient consumer activity, and a multi-year investment in the Asia franchise, alongside heightened client hedging and trading amid elevated single-name volatility. He noted that net portfolio exposure to semiconductor and semiconductor-capital equipment stocks, which started the year at 10%, peaked at 24% before easing to about 18%, reflecting some profit-taking in the AI theme. Kelly emphasized the firm's 'One GS' approach of integrating products and client coverage as a key competitive edge, while acknowledging potential headwinds from crowded trades and valuation debates around the AI capex cycle.
Goldman Sachs Group Inc
Morgan Stanley
JPMorgan Chase & Co
