The US investment bank has more than doubled its structured product sales during the second quarter of 2021.

Goldman Sachs has significantly increased its sales of structured products in the US market after posting US$3.4 billion across 832 products in Q2 21, compared with US$1.6 billion on the back of 596 products during the same period, a year prior.

As an issuer group, Goldman Sachs boosted its product issuance to 726 and 742 in the second and third quarters of 2020, respectively.

However, sales volumes remained subdued until the first quarter of 2021 when the bank racked up US$3.5 billion across 923 structured products.

In the US market, the bank ranks second on the SRP league tables in Q2 21 behind Barclays which issued 699 structured products valued at US$3.7 billion, compared with 607 products worth US$2.7 billion in Q2 20.

Trailing behind Barclays and Goldman are J.P. Morgan with 1,167 products valued at US$3.1 billion, Citi with 865 products worth US$3 billion, and Morgan Stanley with 648 products and a sales figure of US$2.7 billion.

Europe

The bank’s structured products issuance and sales in Europe have decreased by almost half, SRP data shows. In Q2 21, Goldman issued 26,116 products valued at €333m (US$400m), compared with 45,446 products worth €633m in the second quarter of 2020. Quarter on quarter, issuance and sales fell by 30% and 21%, respectively.

In terms of issuance, Goldman still ranks highly on the league tables as the fourth most prolific issuer group in the European market from third place in the same period of 2020.

Currently, Société Générale has issued the highest number of structured products in the region with 46,391 products worth €997m.

The bank’s issuance linked to the DAX index raised a smaller volume of sales in Q2 21 (US$31m), compared with Q2 20 (US$71m). Other popular underlyings on the bank’s offering in Q2 21 include US benchmarks such as the S&P 500 index, Nasdaq, and the DJ Industrial Average Index.

The Eurostoxx 50 index also featured across more than 1,000 products worth €4.6m followed by a number of German stocks such as Deutsche Telekom, Daimler, Basf or Volkswagen.

Divisional breakdown

The bank led by David Solomon (pictured) reported net revenues of US$15.4 billion and net earnings of US$5.5 billion for the second quarter of 2021 while net revenues totalled US$33.1 billion and net earnings were US$12.3 billion for the first half of 2021.

Investment banking generated its second highest quarterly net revenues of US$3.6 billion, following record net revenues in the first quarter of 2021.

The bank’s global markets segment boasted quarterly net revenues of US$4.9 billion, reflecting solid client activity across both fixed income, currency and commodities (FICC) and equities.

Asset management recorded quarterly net revenues of US$5.1 billion, reflecting record quarterly net revenues from equity investments.

Risk-weighted assets stood at US$667 billion as of June 2021, compared with US$630 billion in March 2021.

Click here to view the bank’s second quarter earnings release.