By Rebecca Ungarino

Goldman Sachs reported first-quarter profit that beat analysts' expectations as tumultuous markets proved a double-edged sword: The bank's trading business boomed, benefiting from market swings, while revenue from investment bankers' advisory work declined.

New York-based Goldman reported $4.74 billion of profit, or earnings per share of $14.12, on revenue of $15.06 billion in the first quarter. Analysts expected Goldman to report per-share earnings of $12.33 on revenue of $14.77 billion, according to estimates compiled by FactSet.

Shares of Goldman rose 2.5% in premarket trading on Monday.

"While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to continue to support our clients," said David Solomon, the firm's chief executive, in a statement on Monday.

Goldman's sales and trading business turned in a strong quarter as traders took advantage of volatile markets that create opportunities for making big bets. Revenue from fixed-income securities, currencies, and commodities -- known as FICC -- rose 61% from last quarter, or 2% from a year earlier, while equities revenue jumped 27% from a year ago.

That marked a record for equities net revenue, the company said, as well as record revenue for equities financing and FICC financing.

The company's investment banking performance was more muted. Investment banking fees fell 8% from the same period in 2024 as advisory revenue dropped 22% in that time. The asset and wealth management division's revenue of $3.68 billion dropped 3% from a year earlier.

Banks such as Goldman, their corporate clients, and consumers have had to adjust to a new reality in a matter of weeks. President Trump's battles over tariffs with China, Mexico, and other key U.S. trading partners have depressed stock prices, roiled bond markets, delayed or squashed companies' appetite for dealmaking, and hurt consumer confidence.

Wall Street was eager for the new administration to spur economic growth by peeling back regulation and cutting the corporate income tax rate. President Trump's regulators are still expected to take a softer approach to banking oversight than their Biden-era predecessors.

For now, though, the chaos and unpredictability Trump is fomenting with his trade policies -- shifting as recently as this weekend -- has overshadowed bankers' earlier optimism. Executives from Morgan Stanley and JPMorgan Chase, which compete with Goldman in investment banking, wealth management, and other areas, told analysts last week that their clients were facing much uncertainty.

Goldman's stock has fallen 14% so far this year, underperforming the S&P 500's 8.6% decline, as of the market's close last Friday. For the first quarter of 2024 the firm reported profit of $4.13 billion, or earnings per share of $11.58, on $14.21 billion in revenue.

Write to Rebecca Ungarino at rebecca.ungarino@barrons.com

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April 14, 2025 07:39 ET (11:39 GMT)

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