Goldman Sachs Reports Consumer Deposits Rocket by $20 Billion During Solid Q2

Goldman Sachs (NYSE:GS), the top global investment bank, is out with Q2 numbers and they are pretty good. Earnings per share (EPS) were reported at $6.26 – a big beat versus what the street was anticipating.

During the quarter, net revenues came in at $13.30 billion or 41% higher than the second quarter of 2019. This was Goldman Sachs’ second-highest quarterly net revenues on record.

Solid numbers came from all segments with investment banking generating a record $2.66 billion for the quarter.

FICC (Fixed Income, Currency, and Commodities) generated $4.24 billion in revenue – the highest quarterly amount in nine years.

Equities brought $2.94 billion in revenue for the firm. The highest quarter in eleven years.

Assets under supervision topped a whopping $2.06 trillion, another record, increasing by $239 billion.

Regarding its emerging Fintech sector and consumer banking brand Marcus, Goldman reported very strong growth as deposits increased by a record $20 billion and now stand at $92 billion. Net revenues in consumer banking were reported at $258 million, 19% higher than the second quarter of 2019, as the second quarter of 2020 included credit card loans which would include the Apple Card.

During the quarter Goldman launched its transaction banking business in the U.S., offering deposit-taking, payments, liquidity management, and escrow services. During the quarter, deposits on the platform increased by $16 billion to $25 billion. Goldman’s Marcus also operates in the UK but has global aspirations.

Marcus, and Fintech in general, are strategic to Goldman’s growth going forward. By leveraging technology and deep experience, Goldman is fast emerging as a money center bank that is completely digital, unhampered by legacy tech and costly brick and mortar locations. Goldman is poised to scale as a next-generation financial service firm.

The earnings call is scheduled for later this morning and should include some additional color on the performance of Marcus and expansion of its consumer-related services.

Shares in Goldman are moving higher in pre-market trading aided by a solid news cycle alongside strong quarterly numbers.

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