Goldman earnings show surprise 28% profit surge
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The news: Goldman Sachs’ first quarter earnings published on Monday revealed that the group’s underwriting and trading divisions helped it post its highest earnings per share since 2021.
The numbers: The Wall Street giant recorded a 28% jump in net income during the first quarter of this year at USD4.1 billion ($6.35 billion), up from USD3.2 billion a year earlier and almost USD1 billion ahead of Bloomberg analyst forecasts. Shares in GS were up over 3% by mid-trading session on Monday.
The context: The results come as a relief for CEO David Solomon, who faced backlash in 2023 over his management of the bank and was forced to rethink the bank’s strategy and “play to our core strengths.”
While Solomon had previously hoped to build out GS' consumer business, refocusing on the investment banking and trading businesses allowed Solomon to stabilise revenues.
Goldman’s trading business was the bank’s clear leader for the quarter, with fixed-income traders delivering USD4.32 billion in revenue, and equity-trading revenue reaching USD3.31 billion, both coming in above expectations.
Goldman’s asset and wealth management division reported an 18% increase in revenue from 12 months ago, reaching USD3.8 billion.
The sources: Goldman Sachs Q1 earnings, Bloomberg
