Goldman Sachs hikes dividend despite trading weakness
Shares of Goldman Sachs were up in trading on Tuesday after the investment bank moved forward with a double-digit hike to its dividend despite a decline in profits in the second quarter.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP INC. | 601.71 | -3.86 | -0.64% |
| JPM | JPMORGAN CHASE & CO. | 246.25 | -3.47 | -1.39% |
| WFC | WELLS FARGO & CO. | 75.28 | -0.89 | -1.17% |
Net income fell by 6 percent in the three months through June to $5.81 per share, higher than analyst expectations, as the Wall Street firm as the was impacted by slower fixed income trading and weakness in debt underwriting. The bank did report higher lending to wealthy clients.
Revenue at Goldman Sachs was $9.46 billion for the period, also topping estimates.
“We are well-positioned to benefit from a growing global economy. And, our financial strength positions us to return capital to shareholders," said CEO David Solomon.
After receiving approval from the Federal Reserve for its 2019 capital plan, Goldman Sachs rose its quarterly dividend 47 percent to $1.25 per share.
The firm is in the midst of an overhaul, seeking out a larger number of middle-market deals instead of the more lucrative megamergers and expanding its consumer lending as earnings from Wall Street trading continues to slow.
It's a key shift for a company that advised top U.S. companies on some of the largest deals in the past century and became infamous for its ability to guide firms as they entered the capital markets.
Now, Goldman Sachs is offering business clients financial counseling in a bid to build new consumer banking relationships and expanding its digital offerings to compete against the likes of Chase and Wells Fargo.
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The company is partnering with Apple on its new credit card offering.