The Goldman Sachs Group, Inc. reported net revenues of USD13.76 billion and net earnings of USD3.44 billion for its second quarter ended 26 June 2009.
Diluted earnings per common share were USD4.93 compared with USD4.58 for the second quarter ended 30 May 2008 and USD3.39 for the first quarter ended 27 March 2009. Annualized return on average common shareholders equity (ROE) was 23.0% for the second quarter of 2009 and 18.3% for the first half of 2009.
Excluding a one-time preferred dividend of USD426 million related to the repurchase of the firms TARP preferred stock, diluted earnings per common share were USD5.71 for the second quarter of 2009 and annualized ROE was 23.8% for the second quarter of 2009 and 19.2% for the first half of 2009.
Business Highlights:
Equity underwriting produced record quarterly net revenues of USD736 million, surpassing the previous record set in the second quarter of 2000.
Fixed Income, Currency and Commodities (FICC) generated record quarterly net revenues of USD6.80 billion, reflecting strength across most businesses, including record results in credit products.
Equities generated record quarterly net revenues of USD3.18 billion, reflecting strong results across the client franchise businesses.
On 17 June 2009, the firm repurchased the preferred stock that was issued to the U.S. Treasury pursuant to its TARP Capital Purchase Program. In addition, the firm completed a public offering of common stock for proceeds of USD5.75 billion during the quarter.
Book value per common share increased approximately 8% during the quarter to USD106.41 and tangible book value per common share increased approximately 10% during the quarter to USD96.94.
While markets remain fragile and we recognize the challenges the broader economy faces, our second quarter results reflected the combination of improving financial market conditions and a deep and diverse client franchise, says Lloyd C. Blankfein, chairman and chief executive officer. Our role as an intermediary focused on making markets for buyers and sellers helped drive our performance. We were also active as an underwriter of many significant debt and equity offerings for clients.
L.D.