NEW YORK--(BUSINESS WIRE)-- The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $8.84 billion and net earnings of $613 million for its second quarter ended June 30, 2010. Diluted earnings per common share were $0.78 compared with $4.93 for the second quarter of 2009 and $5.59 for the first quarter of 2010. Annualized return on average common shareholders’ equity (ROE) (2) was 7.9% for the second quarter of 2010 and 13.1% for the first half of 2010.
Excluding the impact of the $600 million related to the U.K. bank payroll tax and the $550 million related to the SEC settlement, diluted earnings per common share were $2.75 (1) for the second quarter of 2010 and annualized ROE was 9.5% (1) for the second quarter of 2010 and 14.8% (1) for the first half of 2010.
Highlights
The firm continued its leadership in investment banking, ranking first in worldwide announced and completed mergers and acquisitions (3) for the year-to-date.
Despite the $1.15 billion of additional expenses related to the U.K. bank payroll tax and the SEC settlement, book value per common share and tangible book value per common share (4) each increased 1% during the quarter to $123.73 and $112.82, respectively.
The firm continues to manage its capital conservatively. The firm’s Tier 1 capital ratio under Basel I (5) was 15.2% as of June 30, 2010. The firm’s Tier 1 common ratio under Basel I (6) was 12.5% as of June 30, 2010.
The firm’s global core excess liquidity (7) averaged $163 billion for the second quarter of 2010 and was $168 billion as of June 30, 2010.
On July 15, 2010, the firm announced a settlement, subject to court approval, to resolve the SEC’s pending case against Goldman, Sachs & Co., including the payment of $550 million.
