Goldman Sachs (NYSE:GS) posted first-quarter profit that exceeded analysts’ expectations, while company-wide revenue missed on tougher market conditions for two of the firm’s main divisions.
The bank generated $2.25 billion of profit in the period, or $5.71 a share, compared with the $4.89 estimate. Meanwhile, revenue dropped 13% to $8.81 billion on lower results in the bank’s Wall Street trading and Investing and Lending segment, below analyst’s $8.9 billion estimate.
"We are pleased with our performance in the first quarter, especially in the context of a muted start to the year," Goldman CEO David Solomon said in the release.
"Our core businesses generated solid results driven by our strong franchise positions. We are focused on new opportunities to grow and diversify our business mix and serve a broader range of clients globally."
Of the six biggest U.S. banks, Goldman is regarded as the most dependent on Wall Street activities, and that means analysts will want to know how the firm’s trading operations fared in the quarter. J.P. Morgan Chase said last week that first-quarter trading revenue dropped 17% to $5.5 billion.
Solomon or his CFO Stephen Scherr might also provide updates on a strategic review announced in October and progress on the bank’s $5-billion revenue-boosting plan, according to analyst Jason Goldberg of Barclays.
The shares have partially recovered this year, climbing more than 20%.
They opened Monday morning down $5.32, or 2.6%, to $202.69
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