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Goldman Sachs Q2 Profit Down, But Tops View; Hikes Dividend

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Goldman Sachs Group Inc. (GS) reported Tuesday a profit for the second quarter of 2019 that declined 6 percent from last year. However, profit topped analysts' estimates. Net revenues also decreased 2 percent. The company raised its quarterly dividend by 47 percent.

In the pre-market trade, GS is trading at $213.96, up $2.42 or 1.14 percent.

Goldman Sachs's net earnings applicable to common shareholders for the second-quarter declined 6 percent to $2.20 billion from the prior year's $2.35 billion, with earnings per share decreasing to $5.81 from $5.98 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $4.89 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the second quarter declined 2 percent to $9.46 billion, from the prior year, reflecting lower net revenues in Investment Management and Investment Banking, partially offset by higher net revenues in Investing & Lending. Analysts expected revenue of $8.83 billion for the quarter.

Net revenues in Investment Banking for the quarter were $1.86 billion, 9% lower than the prior year. Net revenues in Institutional Client Services were $3.48 billion, 3% lower than last year.

Net revenues in Investment Management were $1.59 billion, 14% lower than the previous year.

Goldman Sachs received a non-objection from the Federal Reserve Board related to its CCAR 2019 capital plan, which includes up to $7.00 billion in common share repurchases and $1.80 billion in total common stock dividends.

The company increased the quarterly dividend to $1.25 per share from $0.85 per share. The dividend will be paid on September 27, 2019 to common shareholders of record on August 30, 2019.

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