Goldman Sachs (GS) reported strong second-quarter results for 2025, underscored by record performance in its Global Banking & Markets division, healthy client engagement, and disciplined capital return initiatives. Net revenues for the quarter reached $14.58 billion, a 15% increase year-over-year, though down 3% sequentially. This growth translated into net earnings of $3.72 billion, marking a 22% annual increase, despite a 21% decline from Q1 2025. Diluted EPS came in at $10.91, up from $8.62 a year ago, though lower than the $14.12 reported in the prior quarter.
Profitability metrics remained solid, with annualized ROE at 12.8% for Q2 and 14.8% for the first half of 2025. Book value per share rose to $349.74, reflecting steady capital growth, while the efficiency ratio improved to 62.0% for the first half—down from 63.8% a year earlier. Despite rising operating expenses of $9.24 billion (up 8% YoY), costs remained flat quarter-over-quarter. The provision for credit losses increased to $384 million, driven by charge-offs and growth in consumer and wholesale portfolios.
Segment performance was particularly strong in Global Banking & Markets, which generated $10.12 billion in net revenues—up 24% YoY, though down 5% sequentially. This included record revenues in Equities at $4.30 billion (up 36% YoY) and strong gains in Investment Banking fees at $2.19 billion (up 26%), driven by advisory strength. FICC revenue also climbed to $3.47 billion, boosted by record financing activity. Segment pre-tax earnings jumped 32% YoY to $4.17 billion, delivering a 15.0% ROE.
In Asset & Wealth Management, net revenues declined 3% YoY to $3.78 billion, reflecting lower investment returns, though management and incentive fees rose amid record assets under supervision of $3.29 trillion. Pre-tax earnings for the segment were $1.01 billion, down 13% YoY. Platform Solutions saw modest growth, with revenues up 2% YoY to $685 million, while losses narrowed as the firm continued streamlining its consumer ambitions.
Goldman returned $3.96 billion to shareholders in the quarter, including a 33% dividend hike to $4.00 per share and $3.00 billion in share repurchases. Global core liquid assets averaged $462 billion, up from Q1, and headcount declined by 2%, reflecting continued cost discipline.
Looking ahead, the firm remains focused on risk management and capital discipline amid evolving economic and regulatory conditions. Notably, the projected Stress Capital Buffer will fall to 3.4% in October 2025, from the current 6.1%, signaling regulatory confidence in Goldman’s financial resilience. Management emphasized strong client engagement, a robust investment banking pipeline, and continued momentum in fee-based flows as key growth drivers going forward.