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The
Wall Street bank's net revenue fell 40.3 percent in the three
months ended March 31 to its lowest since the third quarter of
2011.
"The operating environment this quarter presented a broad range
of challenges, resulting in headwinds across virtually every one
of our businesses," Chief Executive Lloyd Blankfein said in a
statement on Tuesday.
Goldman - the last of the big U.S. banks to release
first-quarter results - reported a 56.3 percent fall in net
income applicable to common shareholders to $1.2 billion, or
$2.68 per share, for the three months ended March 31. (http://bit.ly/22KtaAI)
That compared to $2.75 billion, or $5.94 per share, a year
earlier, when the bank recorded its best quarterly profit in
five years.
Analysts on average had expected earnings of $2.45 per share,
according to Thomson Reuters I/B/E/S.
Goldman's shares, which up to Monday had fallen about 12 percent
this year, were down 0.5 percent in premarket trading.
As with other banks, Goldman's trading revenue was hit by
sliding commodity and oil prices, worries about the Chinese
economy and uncertainty about U.S. interest rates.
Net revenue fell to $6.34 billion from $10.62 billion.
Revenue from trading bonds, currencies and commodities (FICC)
fell about 47 percent to $1.66 billion.
FICC accounted for 26.2 percent of total revenue in the quarter
- a far cry from the 40 percent the business regularly
contributed before the financial crisis.
Goldman's traditional rival, Morgan Stanley <MS.N>, reported on
Monday a 54 percent drop in adjusted revenue from fixed income
and commodities trading and a similar drop in net profit.
Goldman's investment banking revenue, which includes income from
advising on deals and underwriting bond and share offerings,
fell 23.2 percent to $1.46 billion in the quarter.
Like other banks, Goldman has been cutting costs to make up for
weak revenue. In the latest quarter, the bank's operating costs
fell 28.7 percent to $4.76 billion as employee compensation
costs dropped about 40 percent.
(Reporting By Sudarshan Varadhan in Bengaluru; Editing by Ted
Kerr)
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