Goldman Sachs Group Inc (NYSE:GS, ETR:GOS) smashed Wall Street expectations for first-quarter revenues and earnings as its trading teams delivered record numbers.
Net revenues of $14.21 billion came in 16% higher than a year ago and up 26% on the fourth quarter of last year, also well above the $12.92 billion consensus forecast, per LSEG.
Earnings per share landed at $11.58 for Q1, surging from $8.79 a year earlier and almost triple the Q4 figure of $5.48, not to mention beating the Street’s $8.56 estimate.
The Global Banking & Markets division outperformed expectations, with the fixed income, currency commodities (FICC) arm’s sales and trading revenue of $4.3 billion beating forecasts of $3.6 billion, and equities sales and trading revenue of $3.1 billion besting the predicted $2.96 billion.
FICC financing saw a record quarter, driven by mortgages and structured lending, while equities financing was the second best ever, the bank said, boosted by significantly stronger revenues in derivatives, and slightly higher net revenues in equities financing.
Overall its investment banking arm generated $9.73 billion of revenue for the quarter, 15% higher year on year and 53% on Q4 of last year, with investment banking fees up 32% to $2.08 billion.
“Our first quarter results reflect the strength of our world-class and interconnected franchises and the earnings power of Goldman Sachs,” said CEO David Solomon.
The bank was top-ranked worldwide for announced and completed mergers and acquisitions so far in 2024, while Asset & Wealth Management enjoyed record quarterly fees.
Assets under supervision increased $36 billion during the quarter to a record $2.85 trillion.
Rivals JPMorgan Chase and Citigroup also last week posted better-than-expected trading results, with a rebound in investment banking fees in the first quarter.