Goldman Sachs stock jumps over 5% after Q1 profit beats Wall Street estimates

At 11:34 am EDT, the Goldman Sachs stock was trading at $403.55, up 3.61  per cent. 

New York-based Goldman Sachs said on Monday it recorded double digit rise in its Q1 profit on the back of stock and bond markets’ performance.

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The investment bank reported a profit of $4.13 billion for the first quarter, up 28 per cent from a year ago period. It earned $11.67 a share for the quarter, well above analysts expectations. 

Most of the growth was driven in debt underwriting, likely as a result of higher interest rates requiring companies to refinance their bonds and debt, said the bank.

Its investment banking fees surged 32 per cent in the first quarter at $2.08 billion. 

“We continue to execute on our strategy, focusing on our core strengths to serve our clients and deliver for our shareholders,” Goldman Sachs chief executive officer David Solomon said in a statement.

“This performance was aided by the swift actions we took last year to narrow our strategic focus and play to our core strengths,” Solomon also said.

Trading in Goldman’s fixed income, currencies and commodities department rose 10 per cent in the quarter, with revenue of $4.32 billion. 

Stock trading revenue also increased by 10 per cent.

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Revenue from Goldman Sachs’ asset management business rose by 18 per cent. 

As a leading advisor for mergers and acquisitions, Goldman advised on some of last year’s biggest deals, including Exxon Mobil’s $60 billion purchase of Pioneer Natural Resources.

Goldman’s total headcount stood at 44,400 at the end of March, 2 per cent lower than the fourth quarter. In 2023, it had laid off thousands of employees.

Goldman’s rivals JPMorgan Chase and Citigroup on Friday reported profits that beat market expectations.

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Published: 15 Apr 2024, 09:46 PM IST