NEW YORK — Goldman Sachs stated its first quarter earnings fell by 21% from a yr earlier, damage by a slowdown in buying and selling.
The funding financial institution earned a revenue of $2.25 billion, or $5.71 a share, down from a revenue of $2.83 billion, or $6.95 a share, in the identical interval a yr earlier. The outcomes did beat analysts’ expectations, nevertheless. The common estimate of six analysts surveyed by Zacks Funding Analysis was for earnings of $4.74 per share.
Goldman’s earnings had been primarily damage by their buying and selling desks. As soon as a spot of file profitability for the financial institution, Goldman’s buying and selling desks have struggled beneath lighter buying and selling mixed with intervals of maximum volatility which can be arduous to navigate.
Web revenues in Goldman’s mounted revenue, foreign money and commodities division was $1.84 billion, down 11% from a yr in the past. Inventory buying and selling was even worse, reporting web revenues of $1.77 billion, down 24%.
David Solomon, Goldman’s chairman and chief government officer, described the quarter as a “muted begin to the yr,” in a written assertion.
Different elements of Goldman’s companies struggled as nicely. The financial institution reported a 12% decline in web revenues in its funding administration companies, and a 14% decline in web revenues in its investing and lending enterprise.
Goldman has undertaken vital efforts in recent times to diversify the corporate into new types of banking and monetary providers. The financial institution has a rising client banking franchise often known as Marcus, which presents high-interest on-line financial savings accounts and CDs in addition to debt consolidation private loans. Goldman additionally not too long ago jumped into the bank card enterprise, turning into the issuing financial institution for Apple’s new bank card.
The financial institution nonetheless doesn’t get away Marcus, or its client financial institution franchise, as a line merchandise on its outcomes. Nonetheless the financial institution did see a big bounce in curiosity revenue within the quarter, reporting web curiosity revenue of $1.22 billion, up 33% from a yr earlier.
Goldman’s return on tangible fairness, a measurement that describes how nicely a financial institution is performing with underlying belongings, was 11.7%. Banks like Goldman and its competitor Morgan Stanley intention for a return on fairness above 10%.
Agency-wide Goldman stated it had web revenues of $8.81 billion, down 13% from final yr, under analysts’ estimates, in line with Zachs.