Beyond trading activities – still among the mainstays of operations – Goldman Sachs released June quarter results which showed continued growth in consumer banking (including its Marcus business). The high-end numbers beat the consensus, as earnings of $ 15.02 per share were higher than the $ 10.24 expected by the street. Revenue of $ 15.4 billion topped the streets at $ 12.2 billion.
Traction of consumer banking services
Exploring the segments, the company said consumer and wealth management, which includes digital banking known as Marcus, achieved record net sales of $ 1.8 billion over the course of the period. The company said in its additional documents released alongside its results that personal banking operations generated revenues of $ 363 million, up 41% from a year ago, as deposits and balances credit cards were on the rise. It should be noted that a robust IPO market supported the investment bank’s income, at $ 3.6 billion.
And, according to earnings documents, the company had net income of $ 92 million related to its allowance for credit losses, as reserves were reduced on wholesale and consumer loans. The company’s total allowance for credit losses at the end of the period was $ 4 billion at the end of the June period.
CEO David Solomon said on the conference call with analysts that “the strength, breadth and diversity of our business has remained evident this quarter.” He also noted that the company continues to leverage its engagement with its customers on both traditional and digital platforms. Among those efforts: Goldman launched its Apple Card for Families, which allows co-owners of the same account to build together “peer-to-peer” credit, as Solomon noted.
Meanwhile, banking transactions continue to gain traction, with management saying on the call that this segment has 300 customers with around $ 40 billion in deposits.
Asked during the question-and-answer session about possible acquisitions, Solomon noted that the company “continues to invest and develop opportunities in our wealth management business and to expand our digital banking platform for consumers. . From time to time there may be opportunities which can speed up the direction of travel in these [areas]. We are constantly looking at things. If we see things that can accelerate the direction of travel in these companies and accelerate our goals and these companies… we will definitely consider them.