Goldman Sachs reports 16.6% increase in profits, driven by strong equity trading

Goldman Sachs reported higher profits for the first quarter on Monday, driven by strong performance in equity trading and financing, which helped offset losses from public stock market investments.

The investment bank posted profits of $4.6 billion, marking a 16.6% increase from the same period last year, surpassing analyst expectations. Revenues reached $15.1 billion, up 6% compared to the prior year, as reported AFP.

Revenues from equity trading surged by 27%, as Goldman benefited from strong demand for its services in facilitating trades and providing financing to clients involved in stock trading.

While the bank noted a significant decline in advisory revenues compared to last year, it reported an increase in its investment banking fees backlog, which grew over the course of 2024.

Analysts had expected more deals in the wake of the shift from the Biden administration to the Trump administration, as mergers had previously been scrutinized more heavily. However, deal flow has not met expectations, with analysts citing a weakening macroeconomic backdrop, particularly due to shifting tariff policies under the Trump administration.

Goldman Sachs’ Asset and Wealth Management division posted a drop in revenues, attributed to a significant decline in equity and debt investments. This was partially offset by higher management fees.

Goldman Sachs CEO, David Solomon, commented, “Our strong results demonstrate that in times of great uncertainty, clients turn to Goldman Sachs for execution and insight. While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to continue to support our clients.”