Financial Results

Goldman Sachs' Investment Management Posts Strong Net Revenue Rise For Q2

Josh O'Neill Assistant Editor 18 July 2017

Goldman Sachs' Investment Management Posts Strong Net Revenue Rise For Q2

Goldman Sachs has published its results for the second quarter of 2017.

Goldman Sachs' investment management unit logged broadly-strong results for the second quarter of 2017, as net revenues jumped 13 per cent year-on-year and assets under management swelled $33 billion. 

Net revenues stood at $1.53 billion for the quarter, 2 per cent higher than the first quarter of 2017. The bank attributed the increase to “higher management and other fees”, as well as inflated incentive fees and transaction revenues. 

During the quarter, the division's total AuM hit $1.41 trillion. Long-term AuM rose $42 billion, including net inflows of $25 billion spread across all asset classes.

Net market appreciation was $17 billion, primarily in fixed income and equity assets, Goldman Sachs said. Liquidity products dropped $9 billion.

Meanwhile, Goldman Sachs group reported first half net revenues of $15.91 billion, up 12 per cent from the first half of 2016. This contributed to a 340 basis point improvement in pre-tax margin to 37.1 per cent, the bank said. 

“A mixed operating environment persisted into the second quarter as conditions continued to support underwriting and M&A, while constraining certain market-making activity,” said Lloyd Blankfein, chairman and chief executive. “Against that backdrop, we produced revenue growth and improved profitability for the first half of 2017, reflecting both the diversity and strength of our global businesses.” 

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