Goldman Sachs Group, one of the most influential investment banks on Wall Street, said Tuesday its first quarter net income fell 60% from a year ago as demand for its main business lines, investment banking and trading, tumbled.
Net income totaled $1.14 billion, or $2.68 a share, beating $2.50 estimated by analysts who were polled by S&P Global Market Intelligence.
Revenue for the quarter plummeted 40% from a year ago to $6.34 billion. Analysts estimated $6.52 billion.
“The operating environment this quarter presented a broad range of challenges, resulting in headwinds across virtually every one of our businesses,” said CEO Lloyd Blankfein. “Looking ahead, we will continue to focus on delivering superior service to our clients and managing our business efficiently, which remain essential to generating shareholder value over the long term.”
Shares rose 0.09% to $158.95 in pre-market trading.
Revenue for the investment banking unit, which helps clients with mergers and acquisitions and issuing new securities, fell 23% to $1.46 billion. The unit's financial advisory business generated $771 million in revenue, 20% lower than a year ago as it completed fewer mergers and acquisitions deals.
Underwriting revenue also decreased 27% to $692 million as its clients conducted fewer equity deals. It reflected "low levels of industry-wide activity during the quarter," Goldman Sachs said. But its debt underwriting revenue rose due to an increase in investment-grade activity.
