Goldman Sachs rides global dealmaking boom to smash profit estimates

[July 13, 2021]   (Reuters) - Goldman Sachs Group Inc on Tuesday blew past analysts' estimates for second-quarter profit as Wall Street's biggest investment bank capitalized on record global dealmaking activity.

Global mergers and acquisitions activity broke records for the second consecutive quarter this year despite slowing activity among blank-check firms as companies borrowed cheaply and splurged their cash reserves on deals to reposition them for the post-COVID world.

The bank also benefited from favorable comparisons to last year when it set aside more funds to cover potential corporate loan losses due to the pandemic.

Net earnings applicable to common shareholders rose to $5.35 billion in the three months ended June 30, from $2.25 billion a year earlier.

Earnings per share rose to $15.02 from $6.26 a year earlier. Analysts on average had expected a profit of $10.24 per share, according to the IBES estimate from Refinitiv.

Total net revenue surged 16% to $15.39 billion.

(Reporting by Noor Zainab Hussain in Bengaluru and Matt Scuffham in New York; Editing by Sriraj Kalluvila)

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