Goldman crushes revenue and earnings forecasts as investment-banking fees soar
- Goldman Sachs reported first-quarter earnings on Monday that trounced Wall Street's forecasts.
- The investment bank generated over $14 billion in net revenue and $11.58 in earnings per share.
Goldman Sachs reported first-quarter earnings on Monday that crushed Wall Street's expectations, sending its stock price up as much as 3.7% in premarket trading.
The storied investment bank generated $14.2 billion in net revenue — a 16% rise from last year's first quarter, and 26% above the fourth quarter of 2023 — and $11.58 of earnings per share, trouncing consensus forecasts on both measures.
Net revenue in the key global banking and markets division rose 15% year over year to $9.7 billion, fueled by a 32% rise in investment-banking fees to $2.1 billion. Net revenue rose by 10% to $3.3 billion in the equities subdivision, and by 10% to $4.3 billion in the fixed income, currency and commodities segment.
Goldman's asset and wealth management arm posted an 18% rise in net revenue to $3.8 billion, helped by record quarterly management and other fees. Its assets under supervision grew by $36 billion during the first three months of this year to a record $2.85 trillion.
In the earnings release, CEO David Solomon said: "Our first-quarter results reflect the strength of our world-class and interconnected franchises and the earnings power of Goldman Sachs.
"We continue to execute on our strategy, focusing on our core strengths to serve our clients and deliver for our shareholders."