Goldman Sachs Sees 6% YOY Gain for Securities Services

For the second quarter of 2014, Goldman Sachs’ securities services revenue fell 1% year over year while rising 6% ahead of the previous quarter.

Total securities services revenue, which includes activities such as prime brokerage and clearing, equaled $373 million for the quarter, compared to $352 million last quarter and $376 million in the second quarter of 2013.

For the first half of the year, Goldman’s $725 million in securities services revenue is 4% higher than the same period in 2013.

For its investment management business, the firms saw significant increases in assets under management; AUM rose to just over $1 billion, up from $956 million last quarter and $849 million in the second quarter of 2013, a 5% and 19% gain respectively. Total investment management fees reached $1.44 billion, down 8% from last quarter but up 8% year over year.

As a whole, the firm’s net revenue reached $9.13 billion, down 2% from last quarter but up 6% year over year. Net earnings reached $2.04 billion for the quarter, essentially flat with the $2.033 billion earned last quarter but up 5% year over year.

The firm’s Common Equity Tier 1 ratio also rose slightly from 11.3% last quarter to 11.4% as of June 30, 2014, which Goldman says follows the Basel III advanced approach reflecting the applicable transitional provisions. The advanced approach allows for the use of internal models for calculating exposure on derivatives and securities financing transactions.