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The lender's trading revenue jumped 30 percent from a year
earlier when it reported a 2 percent fall, hurt by its worst
bond trading results since the financial crisis.
Volatility rocked global markets in February after a prolonged
calm in 2017, roiling stocks, bonds, currencies and commodities,
and remained elevated through the end of March, helping Goldman
book gains in both equity and bond trading in the first quarter.
Goldman's fixed income trading revenue stood out in sharp
contrast with that of larger rivals. Revenue from the business
rose 23 percent, while JPMorgan Chase & Co's <JPM.N> fixed
income revenue was flat and Citigroup's <C.N> fell 7 percent.
Goldman's shares were up 1 percent in premarket trading.
Net income applicable to common shareholders rose 27 percent to
$2.74 billion, or $6.95 per share, and blew past the average
analyst estimate of $5.58 per share, according to Thomson
Reuters I/B/E/S. http://bit.ly/2HsRNlS
Total revenue, including net interest income, rose 25 percent to
$10.04 billion.
Investing and lending revenue rose 43 percent, while revenue
from investment banking, which includes underwriting fees, rose
5.3 percent.
Historically known as an adviser to the world's richest people
and corporations, Goldman Sachs has been trying to do more
business with ordinary consumers to diversify its business by
trying to shift to relatively stable ones like investment
management and lending.
The lender's return on equity was 15.4 percent. Analysts
typically like to see banks produce returns of at least 10
percent to meet their cost of capital.
Goldman's arch rival Morgan Stanley <MS.N> is scheduled to
report quarterly results on Wednesday.
(Reporting By Aparajita Saxena and Sweta Singh in Bengaluru;
Editing by Saumyadeb Chakrabarty)
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