Financial Results

Investment Management Shines In Q2 At Goldman Sachs

Max Skjönsberg London 20 July 2011

Investment Management Shines In Q2 At Goldman Sachs

Revenues from investment management at Goldman Sachs were $1.27 billion in the three months ended on 30 June, almost unchanged from the previous quarter but up 12 per cent from the second quarter last year.

The New York-based bank attributes the positive figures to an increase in fees, for example incentive fees almost doubled from the same period in 2010.

The investment management side of the firm grew its assets under management by $4 billion during the quarter, taking the total to $844 billion.

On a half-year basis, investment management revenues rose 14 per cent from last year, to $2.5 billion from $2.2 billion.

Figures from the other divisions at Goldman Sachs were more disappointing, with revenues falling 39 per cent from the first quarter, and 19 per cent from last year. Net earnings of $1.09 billion were 77 per cent higher than last year, but 60 per cent lower than for the previous quarter.

The Wall Street titan is to cut 1,000 jobs after its profits missed expectations for only the fifth time since it floated more than a decade ago, the Daily Telegraph reported, without specifying where the axe will fall.

Other US financial heavyweights have reported positive results for the second quarter in the last couple of days in wealth and investment management. For example, Bank of America also grew its asset management arm - although for BofA as a whole, it posted a loss as certain one-off costs took their toll.

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