Goldman Sachs on Monday was posted First-quarter earnings and revenue beat analysts’ expectations, fueled by growth in commercial and investment banking revenue.
Here’s what the company said:
- Earnings: $11.58 per share, versus $8.56 expected, according to LSEG
- Revenue: $14.21 billion, versus $12.92 billion expected
The bank said profit jumped 28 percent to $4.13 billion, or $11.58 a share, compared with the prior period, thanks to a recovery in capital markets activities. Revenue rose 16% to $14.21 billion, beating analysts’ estimates by more than $1 billion.
Goldman shares rose more than 3%.
Fixed income trading revenue rose 10% to $4.32 billion, beating StreetAccount’s estimate of $680 million, thanks to growth in mortgage, foreign exchange and credit trading and financing. Equity trading rose 10% to $3.31 billion, about $300 million more than expected, in derivatives activity.
Investment banking fees rose 32% to $2.08 billion, beating estimates by about $300 million, due to higher debt and equity underwriting.
Goldman Sachs CEO David Solomon has struggled over the past year, but a turnaround appears to be under way as memories of moribund capital markets and mistakes linked to Solomon’s ill-fated push into retail banking begin to fade. .
Like rivals JPMorgan Chase and Citigroupwhich posted better-than-expected trading and investment banking results for the first quarter, Goldman took advantage of improving conditions since the start of the year.
Unlike more diversified rivals, Goldman derives most of its revenue from Wall Street operations. This can lead to large returns in boom times and underperformance when markets don’t cooperate.
After moving away from retail banking, Goldman’s new emphasis on growth focused on its asset and wealth management division.
But that was the only Goldman business that didn’t beat expectations for the quarter: Revenue at the business rose 18% to $3.79 billion, essentially matching StreetAccount’s estimate for higher private banking and lending revenue, an increase private equity units and upward management fees.
Revenue at the bank’s smallest division, Platform Solutions, rose 24% to $698 million, beating estimates by about $120 million, fueled by growth in credit card balances and deposits.
Solomon may field questions on Monday about the latest departures of senior executives, including his global treasurer, Philip Berlinski, and Beth Hammack, co-head of the bank’s global finance group.
On Friday, JPMorgan, Citigroup and Wells Fargo each posted quarterly results that beat estimates.
This story is developing. Check back for updates.
