Goldman Sachs and Citigroup released their second quarter earnings reports before opening bell this morning, with the former seeing a negative impact from legal costs and the latter seeing legal costs fall year over year.
Goldman Sachs posted earnings of $1.98 per share, but that includes litigation expenses of $2.77 per share. Analysts had been expecting earnings of $3.84 per share. The firm’s revenue came in at $9.07 billion, compared to the consensus estimate of $8.78 billion and last year’s $9.13 billion.
Citigroup reported net earnings of $1.51 per share and $19.2 billion in revenue, excluding CVA/ DVA and impacts from a mortgage settlement, and $19.5 billion including CVA/ DVA. Analysts had been expecting earnings per share of $1.34 and revenue of $19.1 billion for the second quarter. In the same quarter last year, net earnings were 3 cents per share. Excluding CVA/ DVA, Citigroup’s earnings were $1.45 per share. Citigroup reported that its earnings were positively impacted by lower legal costs this year compared to last year.
Key metrics from Goldman Sachs’ earnings report
Investment Banking revenue at Goldman Sachs increased to $2.02 billion from last year’s $1.78 billion. The second quarter was the second highest quarterly amount in Underwriting, and Financial Advisory also posted strong results. Investment Management revenue was also the second highest quarterly amount at $1.65 billion. Assets under supervision also set a new record.
Book value per share was $169.33, while tangible book value per share was $160.11. Both numbers are essentially flat with the end of the previous quarter and a 4% increase from the end of 2014. The Common Equity Tier 1 ratio was 11.8% under the Standardized approach and 12.5% under the Basel III Advanced approach.
As of this writing, shares of Goldman Sachs were down 0.87% at $211.10 per share.
Key metrics from Citigroup’s earnings report
Citigrou’s loans fell 5% year over year to $632 billion, while deposits fell 6% to $908 billion. Allowance for loan losses declined to $14.1 billion or 2.25% of total loans. Cost of credit fell 5% to $1.6 billion. Citicorp revenues were $17.8 billion, while Global Consumer Banking revenues fell to $8.5 billion. Revenues from the Institutional Clients Groups increased 6% to $8.9 billion. Citi Holdings saw revenues increase to $1.7 billion
Citigroup reported a book value per share of $68.27 and tangible book value per share of $59.18. The firm’s Common equity Tier 1 Capital ratio increased to 11.4%, while its Supplementary Leverage Ratio rose to 6.7%,