Goldman Sachs equities traders hit record quarter
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The news: Goldman Sachs has posted a surge in profits in the first quarter, driven by bumper results in its equities trading division.
The numbers: The bank’s profit climbed 15% to USD4.74 billion ($7.5 billion), amounting to USD14.12 per share which was ahead of the USD12.33 per share expected by analysts.
The bank’s revenue rose 6% to USD15.06 billion in the first three months of the year, with its equities trading and financing businesses climbing to USD4.2 billion - jumping 27% from one year ago.
Goldman’s Asset & Wealth Management generated net revenues of USD3.68 billion, with assets under supervision increasing USD36 billion during the quarter to a record USD3.17 trillion.
The context: The record quarter for equities traders rounded out just before US President Donald Trump’s tariffs began wreaking havoc on global markets. Goldman competitors Morgan Stanley and JP Morgan Chase also posted surges in equities trading revenue when they reported late last week.
In its earnings report, the bank said it ranked first in worldwide announced and completed mergers and acquisitions, equity and equity-related offerings and common stock offerings, and ranked second in high-yield debt offerings and leveraged loan offerings, for the year-to-date.
Despite the ranking, volatility has curbed investment banking at the Wall Street giant. Investment banking fees at Goldman fell 8% to USD1.9 billion for the quarter, with the number of new deals unveiled since the start of January at the lowest level in over a decade.
What they said: David Solomon, Chairman and CEO of Goldman Sachs, said, “Our strong results this quarter have demonstrated that in times of great uncertainty, clients turn to Goldman Sachs for execution and insight.
“While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to continue to support our clients.”
The sources: Goldman Sachs 1Q25 earnings , WSJ, Bloomberg
