Goldman Sachs on Monday reported first-quarter earnings and revenue that beat analyst expectations, driven by an increase in commercial and investment banking revenue.
This is what the company reported:
- Earnings: $11.58 per share, versus $8.56 expected, according to LSEG
- Revenue: $14.21 billion, versus $12.92 billion expected
The bank said profits rose 28% to $4.13 billion, or $11.58 per share, from the same period a year earlier, thanks to a pick-up in capital markets activities. Revenue rose 16% to $14.21 billion, beating analyst estimates by more than $1 billion.
Goldman shares rose more than 4% in premarket trading.
Fixed income trading revenue rose 10% to $4.32 billion, beating StreetAccount's estimate by $680 million, thanks to an increase in mortgage, currency and credit trading and financing. Share trading rose 10% to $3.31 billion, about $300 million more than expected, due to derivatives activity.
Investment banking fees rose 32% to $2.08 billion, beating the estimate by about $300 million, driven by higher debt and equity underwriting.
Goldman Sachs CEO David Solomon has taken his hits in the past year, but a change appears to be underway as memories of the moribund capital markets and missteps related to Solomon's ill-fated push toward retail banking begin to fade.
as rivals JPMorgan Chase and citi groupthat reported better-than-expected commercial and investment banking results for the first quarter, Goldman took advantage of improving conditions since the beginning of the year.
Unlike more diversified rivals, Goldman derives most of its revenue from Wall Street activities. That can lead to outsized returns during boom times and poor performance when markets don't cooperate.
After moving away from retail banking, Goldman's new emphasis on growth has focused on its asset and wealth management division.
But that was the only Goldman business that didn't beat expectations for the quarter: The business' revenue rose 18% to $3.79 billion, essentially matching StreetAccount's estimate, due to higher private banking and lending revenue, higher participations in private capital and better management. fee.
Revenue at the bank's smallest division, Platform Solutions, rose 24% to $698 million, beating estimates by about $120 million, driven by an increase in deposit and credit card balances.
Solomon could answer questions Monday about the latest departures of top managers, including his global treasurer, Philip Berlinski, and Beth Hammack, co-head of the bank's global financial group.
On Friday, JPMorgan, Citigroup and Wells Fargo each posted quarterly results that beat estimates.
This story is developing. Please check for updates.
