Goldman Sachs revenue beats estimates as bank flags "markedly different" backdrop

Investing.com - Goldman Sachs has reported first-quarter net revenue that beat expectations as tariff-related market volatility underpinned all-time high top-line returns at its equities division, although CEO David Solomon said the bank was entering the current quarter facing a "markedly different" operating environment.

The Wall Street banking giant reported a 6% jump in net revenue versus a year ago to $15.06 billion, compared with Bloomberg consensus estimates of $14.76 billion.

Equities trading revenue in particular surged by 27% year-over-year to a record $4.19 billion, above estimates, reflecting a benefit from increased volatility as markets assessed the impact of U.S. President Donald Trump’s tariff plans. However, analysts at Vital Knowledge noted that the uptick was not as great as the quarterly growth logged by rivals JPMorgan Chase (NYSE:JPM) and Morgan Stanley (NYSE:MS).

Investment banking fees, however, slid by 8% to $1.91 billion, with uncertainty around the levies hitting Goldman’s advisory business.

Fixed income net revenues, meanwhile, increased by 2% to $4.40 billion, thanks to strength in mortgages and structured lending.

Net earnings applicable to common shareholders grew by 15% to $4.74 billion during the three months ended on March 31, translating to diluted income per share of $14.12, due in part to lower-than-anticipated provisions for credit losses. Per-share profit was seen at $12.26.

Goldman’s board also approved a share buyback program of up to $40 billion of common stock, the company said.

"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,” Solomon said in a statement.

The comment comes as many of Goldman’s lending peers have warned that Trump’s sweeping reciprocal tariffs, which were unveiled on April 2 and then later partially delayed following a period of heavy ructions in stock and bond markets, could weigh on economic activity and dent earnings.

Shares in Goldman were higher in premarket U.S. trading on Monday.