In this articleGSFollow your favorite stocksCREATE FREE ACCOUNTGoldman Sachs on Monday posted first-quarter profit and revenue that topped analysts’ expectations, fueled by a surge in trading and investment banking revenue. Here’s what the company reported:Earnings: $11.58 per share, vs. $8.56 expected, according to LSEG Revenue: $14.21 billion, vs. expected $12.92 billionThe bank said profit jumped 28% to $4.13 billion, or $11.58 per share, from the year earlier period, thanks to a rebound in capital markets activities. Revenue rose 16% to $14.21 billion, topping analysts’ estimate by more than $1 billion. Fixed income trading revenue rose 10% to $4.32 billion, topping the StreetAccount estimate by $680 million, thanks to a jump in mortgage, foreign exchange and credit trading and financing. Equities trading rose 10% to $3.31 billion, about $300 million more than expected, on derivatives activity.Investment banking fees surged 32% to $2.08 billion, topping the estimate by roughly $300 million, driven by higher debt and equity underwriting. Goldman Sachs CEO David Solomon has taken his lumps in the past year, but a turnaround appears to be underway as memories of the moribund capital markets and missteps tied to Solomon’s ill-fated push into retail banking begin to fade.Like rivals JPMorgan Chase and Citigroup, which each posted better-than-expected trading and investment banking results in the quarter; Goldman took advantage of improving conditions since the start of the year. Unlike more diversified rivals, Goldman gets most of its revenue from Wall Street activities. That can lead to outsized returns during boom times and underperformance when markets don’t cooperate.After pivoting away from retail banking, Goldman’s new emphasis for growth has centered on its asset and wealth management division. The business could see gains from buoyant markets at the start of the year, though it also has taken write-downs tied to commercial real estate in the past.Solomon may also field questions about the latest examples of an exodus in senior managers, including his global treasurer Philip Berlinski and Beth Hammack, co-head of the bank’s global financing group.On Friday, JPMorgan, Citigroup and Wells Fargo each posted quarterly results that topped estimates.This story is developing. Please check back for updates.Don’t miss these exclusives from CNBC PROFriday’s biggest analyst calls: Apple, Amazon, Tesla, Microsoft, Boeing, First Solar, Schwab & moreCiti says this ‘high risk’ but ‘attractive’ global stock has 280% upsideThis AI stock could fall 50% and has an ‘exaggerated artificial intelligence narrative,’ Morningstar saysMorgan Stanley names 3 overlooked global tech stocks, giving one almost 100% upside …
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[mwai_chat context=”Let’s have a discussion about this article:nnIn this articleGSFollow your favorite stocksCREATE FREE ACCOUNTGoldman Sachs on Monday posted first-quarter profit and revenue that topped analysts’ expectations, fueled by a surge in trading and investment banking revenue. Here’s what the company reported:Earnings: $11.58 per share, vs. $8.56 expected, according to LSEG Revenue: $14.21 billion, vs. expected $12.92 billionThe bank said profit jumped 28% to $4.13 billion, or $11.58 per share, from the year earlier period, thanks to a rebound in capital markets activities. Revenue rose 16% to $14.21 billion, topping analysts’ estimate by more than $1 billion. Fixed income trading revenue rose 10% to $4.32 billion, topping the StreetAccount estimate by $680 million, thanks to a jump in mortgage, foreign exchange and credit trading and financing. Equities trading rose 10% to $3.31 billion, about $300 million more than expected, on derivatives activity.Investment banking fees surged 32% to $2.08 billion, topping the estimate by roughly $300 million, driven by higher debt and equity underwriting. Goldman Sachs CEO David Solomon has taken his lumps in the past year, but a turnaround appears to be underway as memories of the moribund capital markets and missteps tied to Solomon’s ill-fated push into retail banking begin to fade.Like rivals JPMorgan Chase and Citigroup, which each posted better-than-expected trading and investment banking results in the quarter; Goldman took advantage of improving conditions since the start of the year. Unlike more diversified rivals, Goldman gets most of its revenue from Wall Street activities. That can lead to outsized returns during boom times and underperformance when markets don’t cooperate.After pivoting away from retail banking, Goldman’s new emphasis for growth has centered on its asset and wealth management division. The business could see gains from buoyant markets at the start of the year, though it also has taken write-downs tied to commercial real estate in the past.Solomon may also field questions about the latest examples of an exodus in senior managers, including his global treasurer Philip Berlinski and Beth Hammack, co-head of the bank’s global financing group.On Friday, JPMorgan, Citigroup and Wells Fargo each posted quarterly results that topped estimates.This story is developing. Please check back for updates.Don’t miss these exclusives from CNBC PROFriday’s biggest analyst calls: Apple, Amazon, Tesla, Microsoft, Boeing, First Solar, Schwab & moreCiti says this ‘high risk’ but ‘attractive’ global stock has 280% upsideThis AI stock could fall 50% and has an ‘exaggerated artificial intelligence narrative,’ Morningstar saysMorgan Stanley names 3 overlooked global tech stocks, giving one almost 100% upside …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
