Goldman Sachs’ first-quarter results beat Wall Street estimates

Goldman Sachs It reported a 15% increase in first quarter profits as market volatility led to record revenues from stock trading and boosted bond outcomes.

Wall Street lenders joined rivals JPMorgan Chase and Morgan Stanley to report higher profits. However, investors shifted their focus to economic forecasts. This is clouded by uncertainty about tariffs that can drive inflation and cause a recession.

Goldman’s profits rose to $14.12 per share, or $14.12 per share, for the three months ended March 31, the bank said Monday. This was compared to $4.13 billion a year ago, or $11.58 per share.

“We are entering the second quarter in a significantly different operating environment than we did at the beginning of this year, but we are confident in our ability to continue supporting our clients,” CEO David Solomon said.

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David Solomon, CEO of Goldman Sachs. (Photographer: Getty Images/Michael Nagle via Getty Images/Bloomberg)

Turbulent Market It raised Goldman’s stock trading revenues by 27% to a record $4.2 billion as investors scrambled to remake their portfolio and reduce hits from new tariffs.

Bonds, currency and commodity trading revenues rose 2% to $4.4 billion. Goldman’s shares rose 2.5% to $507 before the bell.

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However, as companies navigate the steepest trade barriers in over a century, attention from corporate clients could limit growth in the coming months.

The initial release has not yet been meaningfully recovered. The Benchmark S&P 500 Index has dropped by around 9% so far this year, with mergers and acquisitions still under control.

Goldman’s investment banking fees fell 8% in the quarter to $1.9 billion.

The shift highlights the dramatic shift in the sector’s sentiment, which was celebrating President Donald Trump’s return to the White House until just a few months ago.

Goldman’s shares have fallen 12% since tariffs were announced earlier this month, but the rivals between JPMorgan and Morgan Stanley are down 4% and 9% respectively.

But even before the latest slides, concerns were rising. Securities firm Oppenheimer downgraded Goldman’s shares in March, warning that the Trump administration’s aggressive efforts to overturn global trade norms could clash with many companies that rely on capital market activity.

Goldman assets and wealth management arm revenues, institution-compatible units and Pure Worth’s personal, It fell 3% to $3.68 billion. The bank oversaw a record $3.17 trillion in assets in the first quarter.

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Goldman’s assets executives said earlier this month that tariffs were a “growth shock” and that they gave up forecasts of recession after bank economists increased, then withdrawn, and US tariffs were announced and later delayed.

Goldman also secured a $287 million clause for credit losses compared to last year’s $318 million.

High wages, higher scrutiny

Solomon was awarded a $80 million share bonus to take the helm for another five years. John Waldron, president and chief operating officer, widely considered Solomon’s successor, was also awarded a $80 million retention bonus in his restricted shares.

It marked an impressive comeback for the management team fired after Goldman’s costly misstep in consumer banking. After losing billions, the banks have since returned to their traditional hubs of investment banks and trading.

The Goldman Sachs logo can be found on the trading floor of the New York Stock Exchange (NYSE) in New York City. (Reuters/Andrew Kelly/File Photo/Reuters Photo)

Still, there was a pushback from skeptics who viewed compensation as overkill. Proxy Advisor Institutional Shareholder Services and Glass Lewis have called on investors to reject the award, complicating the board’s efforts Hold the best talent After the recent executive exodus.

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The bank’s annual shareholders meeting is scheduled for April 23rd, with shareholders voting for several proposals, including paid proposals.

The outcome of a vote is not binding, but the board often takes it into consideration while shaping future decisions.