Between the boom of its stock market activity and the rise in credits outstanding, Goldman Sachs is preparing for the next day.
The fear of tomorrow has earned Goldman Sachs. The american merchant bank has just announced that she had taken advantage of the second quarter to increase its reserves to $ 1.59 billion, far short of the $ 214 million a year ago. The institution has published its quarterly report, which remains, to say the least in the green, led by its activity related to the market and the investment bank.
But the consequences of the health crisis weigh on the largest u.s. banks, which fear that the future will be even more difficult. Still more prudent, JP Morgan has reserved $ 10.5 billion to its reserves, an amount indicative of a situation exceptionally blurred in the world of finance. Goldman Sachs perceives a ” deteriorating economic environment “, particularly because of the increase in loans outstanding and defaults of individuals and businesses.
Profit up 2 %
But the situation is very paradoxical. In parallel to the difficulties of some companies, the Nasdaq has gained more than 17 % since the beginning of the year. Compared to expectations of analysts, the results released by Goldman Sachs show a real surge in the markets since the beginning of the epidemic COVID-19.
Far from the “black Monday” at the beginning of march to Wall Street (and on the main stock markets worldwide), the institution reported today that it has increased its revenues related to its activities as a market of the order of 93 % year on year.
In total, its turnover is established with a growth of 41 %, which means that it will generate net income 2 % higher than the same period the previous year, to $ 2.25 billion. In addition to the stock market, his advice on fundraising and mergers and acquisitions increased by 36 %, to $ 2.66 billion.
The credit is a lever for Goldman Sachs
Paradoxically, with fears over the credits outstanding, Goldman Sachs announced on the 12th of June last to want to invest in more depth in the field of loans. The business bank has announced the arrival of a new supply of credit to the Amazon sellers.
Originally, the institution was seeking to open a branch fintech in the credit, to provide a platform for offering these services to the actors of the tech. Finally, it is the giant of e-commerce has taken advantage of it in an exclusive way, allowing it to detach from the activity.
In addition to the credit, Goldman Sachs is also counting on the savings to its strategy. The British are familiar with the presence of the institution in new york on the sector, which has made an offer of savings account named ” Marcus “.
On-site, the popularity of the offer has reached new heights : the bank has earned not less than 100,000 new clients, for 8 billion pounds more than stock. A success to be far from simple to manage, however.
On June 15, Goldman Sachs was trying to close his portal account openings because of the legislation : passed 25 billion pounds of loans, “Marcus” should become a bank online full. Last month, Goldman Sachs announced that it had reached a high of 21 billion pounds.