Goldman Sachs on Monday sent First-quarter earnings and revenues exceeded analyst expectations, driven by growth in trading and investment banking revenues.
Here’s what the corporate said:
- According to LSEG, profit: USD 11.58 per share against the expected USD 8.56
- Revenue: $14.21 billion vs. $12.92 billion expected
The bank said profit rose 28% to $4.13 billion, or $11.58 per share, from a yr earlier, helped by a recovery in capital markets. Revenue rose 16% to $14.21 billion, beating analyst estimates by greater than $1 billion.
Fixed income trading revenue increased 10% to $4.32 billion, topping StreetAccount estimates by $680 million.
Goldman Sachs CEO David Solomon gave up on the stock last yr, but hope is growing that the situation will improve.
Dormant capital markets and the missteps of Solomon’s ill-fated foray into retail banking should give technique to higher results this yr.
Rivals JPMorgan Chase AND Citigroup reported better-than-expected trading results and a rebound in investment banking fees in the primary quarter; investors might be dissatisfied if Goldman doesn’t show similar gains.
Unlike more diversified rivals, Goldman derives most of its revenue from its Wall Street operations. This can result in excessive returns during boom times and poor performance when markets don’t cooperate.
After leaving retail banking, Goldman focused on development within the asset and wealth management department. The company was capable of report profits at the start of the yr due to strong market conditions, even though it has also recorded write-downs related to industrial properties prior to now.
Solomon may ask questions on recent examples of the exodus of senior executives, including his global treasurer Philip Berlinski and Beth Hammack, co-chair 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. Please check back for updates.
Credit : www.cnbc.com
