Goldman Sachs Group Inc. (NYSE:GS) was down 1.48% in early afternoon trading on April 23. U.S. stocks lurched out of the gate on Monday as NAFTA negotiations have entered a key phase and slowing growth has some investors worried. Goldman Sachs released its first quarter results early last week, beating analyst expectations in what has been a stellar earnings season for U.S. banks thus far.
Revenue from equities trading rose 38% year over year to $2.31 billion as Goldman’s traders were able to log solid performances amidst increased volatility. Investing and lending revenue climbed 43% to $2.09 billion, also beating projections. Total revenues hit $10.04 billion in the first quarter and earnings per share were $6.95.
Goldman said that central bank policy and the U.S. Tax Cuts and Jobs Act served as a boost in the first quarter. The bank has reiterated its optimism going forward even in the midst of a trade spat between the U.S. and China. CEO Lloyd Blankfein is reportedly close to stepping down but it is not clear when this will take place.
Shares of Goldman Sachs are now down 1.1% in 2018 thus far. The stock has climbed 16.2% year over year. U.S. tax reform should continue to be a boon for earnings going forward, and a resolution on NAFTA will likely ease investor anxieties in North America. Bank stocks are trading at a discount in the U.S. and Canada considering strong recent earnings, and investors should keep them on their radar going forward.
