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Goldman Sachs’ profits rose 28 per cent in the first quarter, far ahead of analysts’ estimates, boosted by its trading business and a nascent recovery in investment banking.
Goldman said net income for the first three months of the year was $4.1bn, up from $3.2bn a year earlier and almost $1bn ahead of analysts’ forecasts compiled by Bloomberg.
Investment banking had its best quarter in two years, with revenues of $2.1bn. This was up 32 per cent from a year earlier, though well below the peak during the pandemic-era boom.
Goldman’s equity and fixed income trading businesses defied analysts’ predictions that revenues would fall, with both reporting 10 per cent increases in the first quarter.
Trading has been a bright spot in recent years for Goldman, buoyed by market swings during the pandemic, Russia’s invasion of Ukraine, and central bank interest rate rises. Goldman said that it benefited in the first quarter from higher revenues in mortgages, currencies and credit trading.
Goldman’s asset and wealth management division, the cornerstone of chief executive David Solomon’s efforts to diversify the Wall Street bank away from volatile investment banking and trading, reported revenue of $3.8bn. This was up 18 per cent from a year ago.
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