ICBC, Facebook
Investing and Lending includes Goldman Sachs’s stake in Industrial & Commercial Bank of China Ltd., that country’s biggest lender, as well as Facebook Inc., operator of the world’s largest social network. The segment also books profits or losses from the Special Situations Group, a proprietary investing unit led globally by Hong Kong-based Jason M. Brown.
Revenue from asset management rose 12 percent to $1.32 billion. Total assets under management increased $3 billion during the quarter to $968 billion.
Investors are seeking more information about future dividend increases and share buybacks. While Goldman Sachs’s capital proposal was approved by the Federal Reserve last month, the regulator said Goldman Sachs must submit a new plan to address weaknesses related to projections of losses and revenue.
Dividend History
Last year, the bank increased its dividend twice, boosting the quarterly payout to 50 cents a share from 35 cents, and repurchased $4.64 billion of stock after winning Fed approval. The bank said today it held the dividend at that level for its next payout on June 27 and repurchased $1.52 billion in stock during the first quarter.
That was more than the $1.3 billion estimated by Credit Suisse’s Chen. Goldman Sachs also said its board authorized it to buy back another 75 million shares.
Warren Buffett’s Berkshire Hathaway Inc. reached an agreement with Goldman Sachs last month to settle warrants granted at the height of the 2008 financial crisis, which will make Berkshire one of the bank’s largest shareholders without paying anything.
Berkshire had the right to buy 43.5 million Goldman Sachs common shares for $115 apiece until Oct. 1. Under the deal, Buffett’s firm will get Goldman Sachs stock equal to the difference between the average closing price during the 10 trading days before Oct. 1 and the exercise price, multiplied by 43.5 million.