Goldman Sachs Q2 results: ‘I'm astonished it could make this much money’

Goldman Sachs Group Inc (NYSE: GS) is up roughly 5.0% on Monday after the Wall Street bank reported better-than-expected results for its fiscal second quarter.

Goldman Sachs Q2 results: a brief recap

• Net income printed at $2.77 billion versus $5.35 billion in Q2 of previous year
• Per-share earnings of $7.73 were nearly cut in half on a year-over-year basis
• Revenue tanked 23% YoY to $11.86 billion, as per the earnings press release
• FactSet consensus was for $6.56 of EPS on $10.78 in quarterly revenue
• Net interest income jumped 7.0% as interest rates continued to go up

Goldman Sachs blamed asset management and investment banking for the hit to its Q2 revenue, while global markets and weal management remained resilient. The stock price is still down more than 20% for the year.

Other notable figures and Cramer’s remarks

At 10.6%, return on equity was down from last year’s 24%. It was well below the medium-term target of roughly 15% as well. For credit loss provisions, Goldman Sachs set aside $667 million versus $92 million of reserve release in the same quarter of 2021.

It lost $221 million in equity investments but noted a 34% increase in the loan book. Discussing the earnings report on CNBC’s “Squawk on the Street”, Jim Cramer said:

Wall Street currently rates Goldman Sachs at “overweight” and sees a close to 30% upside from here on average.