Shannon Stapleton | Reuters
The bank said Wednesday it earned $3.11 a share in the quarter on revenue of $8.74 billion.
Goldman shares are lower by 1.6% in the
“Our quarterly profitability was inevitably affected by the economic dislocation,” said David Solomon, chairman and CEO, in a release. ” As public policy measures to stem the pandemic take root, I am firmly convinced that our firm will emerge well-positioned to help our clients and communities recover.”
Trading results increased because of the market volatility. Fixed Income, Currency and Commodities (FICC) posted net revenues of $2.97 billion, highest in five years. Equities revenues came in at $2.19 billion, the second best quarter in five years.
Earnings: $3.35 a share, 41% lower from a year earlier, according to Refinitiv.
Revenue: $7.92 billion, a 10% decrease from a year earlier.
For years, critics of the bank have bemoaned its lack of broad retail banking operations as
On Tuesday, JPMorgan Chase and Wells Fargo both posted sharp drops in first-quarter profit as the banks set aside a combined $10 billion for a coming deluge of loan defaults. A lone bright spot for the banks has been surging trading and bond issuance operations, driven in part by the historic jump in market volatility last month.
Still, Goldman is exposed to declines in the value of private and public companies held as investments, which could sting the firm.
And analysts will be keen to hear if CEO David Solomon’s performance targets, given at the bank’s first-ever investor day in January, will still be achievable.