US EditionGoldman Sachs posts higher profit on strength in dealmaking, equities trading
Equity trading revenue rose 27% to a record $5.33 billion, while investment banking fees jumped 48% as market volatility lifted client activity.
- On Monday, April 13, Goldman Sachs reported its highest quarterly profit in five years, driven by record Equities trading revenue of $5.33 billion, though weakness in FICC markets partially offset the gains.
- Chief Executive David Solomon said the "geopolitical landscape remains very complex," fueling market swings that lifted Equities revenue 27% year-over-year and beat Bloomberg Consensus estimates of $4.9 billion.
- FICC revenue fell 10% to $4.01 billion, missing Bloomberg Consensus estimates by more than $800 million, as Goldman blamed "significantly lower net revenues in interest rate products and mortgages."
- Despite blowout results, the FICC miss sent shares more than 4% lower in premarket trading, while Equities co-head Erdit Hoxha departed for hedge fund Millennium Management.
- Advisory fees surged 89% year-over-year to $1.5 billion, reflecting merger rebound; Total Investment Banking fees hit $2.84 billion as new regulations continue reshaping the bank's business model.
32 Articles
32 Articles
Merger fees lift Goldman Sachs profits as it warns of volatility
Goldman Sachs reported strong first-quarter earnings on Monday, propelled by increased merger advisory fees as it warned of greater volatility amid geopolitical complexity. The New York-based investment bank scored an 18 percent jump in quarterly profit to $5.4 billion, citing a "significant increase in completed mergers and acquisitions volumes." Revenues rose 14 percent to $17.2 billion. While CEO David Solomon did not explicitly flag the US-I…
US bank Goldman Sachs generated $5.4 billion in net profit in the first quarter of this year, an 18 percent increase from the same period last year, driven mainly by increased volume in mergers and acquisitions.
Goldman Sachs, the investment bank, clearly exceeds expectations. Despite record revenues, the shares fall pre-exchange – uncertainty due to geopolitical risks remains high.
The net revenue rose by 14%, also on an annual basis, to US$ 17.23 billion
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