Analyst Note| Michael Wong, CFA, CPA |
Goldman Sachs reported a modest sequential decline in its second quarter from record first-quarter results, but we continue to believe that it and other investment banks will still put up relatively strong numbers for the foreseeable future. The company reported earnings to common shareholders of $5.3 billion, or $15.02 per diluted share, on $15.4 billion of net revenue for the second quarter of 2021. Return on tangible common equity was 25.1% for the quarter and 28.9% year to date. We don’t anticipate making a material change to our $313 fair value estimate for narrow-moat Goldman Sachs.