Choppy financial markets took a toll on US heavyweight bank Goldman Sachs Group Inc (NYSE:GS) as earnings dropped by almost two-thirds in its latest three months.
First-quarter net income tumbled to US$1.14bn, or US$2.68 a share, from US$2.84bn, or US$5.94 a share, a year earlier.
Revenues slid to US$6.34bn from $10.62bn or the lowest for a quarter since 2011.
The earnings number was still ahead of market estimates of $2.45 a share, but Lloyd Blankfein, the bank’s chief executive, said it had faced challenges in all areas of its operation.
All three of its core activities saw revenues fall sharply.
Investment banking fell 23% to US$1.46bn, with the M&A unit down by 20%, with similar drops in equity trading revenue.
Fixed income and currencies fared worse with a 47% decline as the uncertainty in the global economy affected the first half of the year and tough market making conditions.
Client services, its largest division, saw a 37% drop in income as trading sales and volumes fell.
“Looking ahead, we will continue to focus on delivering superior service to our clients and managing our business efficiently,” Blankfein added.
Operating costs fell 29% to US$4.8bn as staff payments fell by around 40%.
Shares rose 2% to US$162.