Goldman Sachs Earnings Surge With Trading Revenue

Goldman Sachs, America’s largest investment bank reported better than expected first quarter earnings before the bell Tuesday. $GS saw a 38% jump in equity trading revenue with trading revenue across all markets rising.

Goldman Sachs, America’s largest investment bank reported better than expected first quarter earnings before the bell Tuesday. $GS saw a 38% jump in equity trading revenue with trading revenue across all markets rising.

GS Revenue March 2018

 Goldman Traders Revenues Turn Around

Earnings

EPS of $6.95 on revenue of $10.04 billion. Investment banking revenue rose 5% to $1.79 billion Ahead of expected EPS of  $5.67 on revenue of $8.89 billion,

Goldman Sachs Group Inc NYSE: $GS  

April 17, 9:48 AM EDT 260.09 ▲ 2.10 (0.81%)

Highlights:

  • Fixed income, currencies and commodities revenue rose 23% to $2.07 billion
  • Equities revenue leapt 38% to $2.31 billion, 
  • Investing and lending revenue surged 43% to $2.09 billion.
  • Investment management revenue rose 17% to $1.77 billion.
  • Quarterly dividend was raised 6.7% to 80 cents a share.
  • Annualized ROE (1) of 15.4% was the highest in over five years. 
  • Diluted earnings per common share were $6.95, the third highest quarterly performance.
  • Book value per common share increased by 3.2% during the quarter to $186.73. 

“We are well positioned to serve our clients as the global economy continues to show strength and central banks unwind certain aspects of policy stimulus,  We are also broadening our client base and further diversifying our businesses to drive more revenue and earnings growth for the firm.” Chairman and CEO Lloyd Blankfein said in a statement.

Goldman Sachs Q1 2018 Earnings

The bank rally had been fueled by expectations for easier regulations including a possible repeal of DoddFrank and infrastructure spending. The Federal Reserve decision to raise rates has also helped banks.  The new surge in home prices has also buoyed optimism for the mortgage business and banks profits thereto. Tax cuts, a stronger economy and higher interest rates have helped banks’ earnings. Bank of America reported results on Monday.

Goldman’s results follow earnings on Friday from following money center banks JPMorgan Chase $JPM. Wells Fargo $WFC, PNC Financial $PNC and  $C.  Bank of America $BAC reported bouyant results on Monday.

Source: Goldman Sachs, AlphaStreet


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