Goldman Sachs Reports Dip in Q2 Profit, FICC Revenues Fall
- Low volatility weighed on FICC revenues.
This Tuesday Goldman Sachs has reported its financial results for the second quarter of its 2019 fiscal year ended June 30, 2019, revealing 5.6 percent fall in quarterly profit.
For the second quarter of 2019, the New York-headquartered firm recorded net revenues of $9.46 billion. This is lower by two percent when measuring it against the same quarter of last year, and seven percent higher than the first quarter of 2019.
Net earnings came in at $2.42 billion for the second quarter or $4.67 billion year-to-date. When comparing Q2’s results quarter-on-quarter, it is higher by 7.5 percent. However, on a yearly comparison, it is lower by 5.6 percent.
Revenues were largely dragged down due to a sluggish performance in the fixed-income unit of the Group, as well as weakness in debt underwriting.
FICC revenues drag down results
Net revenues in Institutional Client Services, which includes revenues generated from Fixed Income, Currency, and Commodities (FICC), was $3.48 billion for the second quarter of 2019. This is three percent lower than the second quarter of 2018 and four percent lower than the first quarter of 2019.
Taking an even closer look, the net revenues for the FICC Client Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term were $1.47 billion. Against the second quarter of 2018, it’s lower by 13 percent. This reflects significantly lower net revenues in interest rate products and currencies as well as lower net revenues in credit products, the statement said.
However, this lackluster performance was partially offset by higher net revenues in commodities and mortgages. As pointed out by Goldman Sachs, the second quarter was categorized by low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and low client activities.
Looking ahead, Goldman Sachs will: “Remain focused on expanding our addressable market and broadening client relationships while investing in automation and platforms to improve efficiency.”
This Tuesday Goldman Sachs has reported its financial results for the second quarter of its 2019 fiscal year ended June 30, 2019, revealing 5.6 percent fall in quarterly profit.
For the second quarter of 2019, the New York-headquartered firm recorded net revenues of $9.46 billion. This is lower by two percent when measuring it against the same quarter of last year, and seven percent higher than the first quarter of 2019.
Net earnings came in at $2.42 billion for the second quarter or $4.67 billion year-to-date. When comparing Q2’s results quarter-on-quarter, it is higher by 7.5 percent. However, on a yearly comparison, it is lower by 5.6 percent.
Revenues were largely dragged down due to a sluggish performance in the fixed-income unit of the Group, as well as weakness in debt underwriting.
FICC revenues drag down results
Net revenues in Institutional Client Services, which includes revenues generated from Fixed Income, Currency, and Commodities (FICC), was $3.48 billion for the second quarter of 2019. This is three percent lower than the second quarter of 2018 and four percent lower than the first quarter of 2019.
Taking an even closer look, the net revenues for the FICC Client Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term were $1.47 billion. Against the second quarter of 2018, it’s lower by 13 percent. This reflects significantly lower net revenues in interest rate products and currencies as well as lower net revenues in credit products, the statement said.
However, this lackluster performance was partially offset by higher net revenues in commodities and mortgages. As pointed out by Goldman Sachs, the second quarter was categorized by low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and low client activities.
Looking ahead, Goldman Sachs will: “Remain focused on expanding our addressable market and broadening client relationships while investing in automation and platforms to improve efficiency.”