Goldman Sachs profits from volatility in US markets.

Goldman Sachs Group Inc. reported a record $4.3 billion in revenue in Q2, driven by a volatile market and increased lending to hedge funds and other buy-side clients. Equities financing revenue jumped 23% and equities intermediation rose 45%. JPMorgan Chase & Co. also beat estimates, but hinted at uncertainty around the ability to bring in more business if markets become unstable.

Goldman Sachs Group Inc. (NYSE: GS) and JPMorgan Chase & Co. (NYSE: JPM) have reported their second-quarter earnings, showcasing a mix of positive and challenging trends. Goldman Sachs reported record revenue of $14.58 billion, driven by a volatile market and increased lending to hedge funds and other buy-side clients. Equities financing revenue jumped 23% and equities intermediation rose 45%, contributing to the firm's strong performance. Despite these gains, Goldman Sachs experienced a sequential decline in several key metrics compared to the strong first quarter [2].

JPMorgan Chase, on the other hand, beat analysts' expectations with non-GAAP earnings per share (EPS) of $4.96, surpassing estimates by $0.48. The company's revenue of $45.7 billion exceeded forecasts by $1.66 billion. The bank attributed its strong performance to a $774 million income tax benefit and lower-than-expected credit costs of $2.8 billion [4]. However, JPMorgan Chase hinted at uncertainty around the ability to bring in more business if markets become unstable.

Both banks maintained strong capital positions. Goldman Sachs reported a Standardized CET1 capital ratio of 14.9% and a balance sheet with total assets of $1.79 trillion and shareholders' equity of $124 billion. JPMorgan Chase's tangible book value per share increased to $103.40, up 11% year-over-year, while its total assets under management (AUM) reached $4.3 trillion, up 18% year-over-year [4].

Goldman Sachs announced a 33% increase in its quarterly dividend to $4.00 per common share for the third quarter of 2025, signaling confidence in its financial outlook despite the mixed quarterly results [2]. The firm's loan portfolio totaled $217 billion, with approximately 85% secured.

The premarket stock price increase for Goldman Sachs shares of 1.65% to $714.10 and JPMorgan Chase's 10.3% share price increase over the last month indicate investor optimism, focusing on the positive aspects of the results rather than the sequential declines [2, 4].

References:
[1] https://www.cnbc.com/2025/07/16/goldman-sachs-gs-earnings-q2-2025-.html
[2] https://za.investing.com/news/company-news/goldman-sachs-q2-2025-slides-record-aus-of-329t-amid-mixed-quarterly-results-93CH-3791418
[3] https://www.cnbc.com/2025/07/15/jpmorgan-chase-jpm-earnings-q2-2025.html
[4] https://www.ainvest.com/news/jpmorgan-chase-exceeds-expectations-q2-eps-4-96-revenue-45-7b-2507/