By AnnaMaria Andriotis

Goldman Sachs said a surge in equities trading revenue fueled its profit in the first quarter, which ended just before President Trump's sweeping tariffs set off market turmoil.

The Wall Street giant's profit increased 15% to $4.74 billion in the first three months of the year. That amounted to $14.12 per share, easily surpassing the $12.33 per share analysts expected.

Its revenue rose 6% to $15.06 billion. Analysts had expected $14.77 billion. Trading revenue was higher, led by a 27% jump in its equities trading and financing businesses. JPMorgan Chase and Morgan Stanley also last week reported big increases in equities trading revenue.

The heightened trading activity came even before Trump's "Liberation Day" tariffs were announced. The upheaval in markets since then has put top bankers and their corporate clients on edge about what might come next.

For now, there is optimism that a slowdown in investment banking will be offset by increased trading activity.

At the start of the year, many investor portfolios were positioned for "American exceptionalism" to continue or accelerate, top bank executives say. Now many clients are seeking to lessen their exposure to U.S. stocks and the dollar in exchange for international assets, including to Europe and South America, executives say.

Goldman said net revenue in equity derivatives were particularly high in the first quarter, as investors looked to prepare themselves for volatility.

The bank's dealmaking business didn't fare as well.

The stock-market plunge and uncertainty about the global economy have contributed to a number of companies putting mergers and initial public offerings on hold. That started to play out in the first quarter, with companies expressing concern about the uncertainty of Trump's policies.

In the first quarter, Goldman's investment banking revenue fell 8%, dragged down by a 22% decline in advisory fees.

Through the weekend, bankers held calls with company chief executives to brainstorm how much market stability would be needed before IPOs and other deals could proceed. A top Goldman banker said a slowdown in headlines that reset global trade would be needed.

Write to AnnaMaria Andriotis at annamaria.andriotis@wsj.com

(END) Dow Jones Newswires

April 14, 2025 07:47 ET (11:47 GMT)

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