As per reports, Goldman Sachs Group, Inc. (GS) reported a 43% drop in first-quarter profit but exceeded market estimates, as its wealth management performed strong and trading businesses partly offset a drop in equity underwriting as stock market listings dried up. Its global markets segment reported net revenue of $7.87 billion, a 4% increase from last year. Consumer and wealth management soared 21% in net revenues to $2.10 billion, boosted by higher management fees and credit card balances. Investment banking revenue, dropped 36% to $2.41 billion.
“It was a turbulent quarter dominated by the devastating invasion of Ukraine. The rapidly evolving market environment had a significant effect on client activity as risk intermediation came to the fore and equity issuance came to a near standstill,” stated Chief Executive David Solomon, as Goldman was the first major U.S. bank to retreat from Russia.
Goldman’s revenue from advising on deals remained largely unchanged at $1.13 billion. Goldman also cut operating expenses by 18% in the quarter, chiefly due to lower spending on compensation and benefits. Total net revenue dropped to $12.93 billion in the quarter, down nearly 27% from last year. The bank posted a profit applicable to common shareholders of $3.83 billion, or $10.76 per share, in the first quarter, whereas analysts expected $8.89 per share.
The Goldman Sachs Group, Inc. (GS) is one of the world’s leading investment bankers & also a securities and investment management firm that offers a wide range of financial services with a diversified client base. To learn more about The Goldman Sachs Group, Inc. (GS) and to continue to track its progress please visit the Vista Partners Goldman Sachs Group, Inc. (GS), Coverage Page.
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