Goldman Sachs' First Quarter Performance Boosted by Strong Wall Street Performance

NEW YORK (AP) - Goldman Sachs said Monday that it posted a double-digit increase in first-quarter profit, buoyed by the performance of the stock and bond markets generally in the first months of the year.

Goldman Sachs has struggled through much of 2023, as higher interest rates have prevented the firm from making deals and acquisitions. But as Goldman has adapted to the new normal, interest rates appear to be coming down, and Goldman has benefited from a change in attitude.

The New York-based investment bank reported profits of $4.13 billion, up 28% from the same period last year, and the company reported earnings of $11.67 per share for the quarter, well above analysts' expectations.

Goldman Sachs had a strong quarter across most of its underlying businesses. Investment banking expenses rose 32% to $2.08 billion in the quarter. The bank said most of the increase came from debt underwriting, which may have been driven by rising interest rates requiring firms to refinance bonds and debt.

Goldman Sachs' Fixed Income, Currency and Commodities trading revenue grew by $10% to $4.32 billion in the quarter. Equity trading revenue also grew by $101T3T.

Goldman Sachs' asset management business, which handles money for wealthy individuals, large corporations and foundations, grew by 181 TP3T.

Goldman Sachs' ROE (a measure of how well an investment bank manages its underlying assets) is 14.81 TP3T annualized, and banks like Goldman Sachs typically want to keep this above 101 TP3T.

Shares of Goldman Sachs are up more than 3% in morning rock trading.