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Goldman crushes profit estimates as trading surges


(Reuters) - Group Inc blew past Wall Street's expectations for quarterly profit on Tuesday, powered by a surge in trading and higher fees from debt and equity

The lender's trading jumped 30 percent from a year earlier when it reported a 2 percent fall, hurt by its worst bond trading results since the financial crisis.

Volatility rocked global markets in February after a prolonged calm in 2017, roiling stocks, bonds, currencies and commodities, and remained elevated through the end of March, helping Goldman book gains in both equity and bond trading in the first quarter.

Goldman's fixed income trading stood out in sharp contrast with that of larger rivals. from the business rose 23 percent, while JPMorgan Chase & Co's fixed income was flat and Citigroup's fell 7 percent.

Goldman's shares were up 1 percent in premarket trading.

Net income applicable to common shareholders rose 27 percent to $2.74 billion, or $6.95 per share, and blew past the average estimate of $5.58 per share, according to I/B/E/S.

Total revenue, including net interest income, rose 25 percent to $10.04 billion.

Investing and lending rose 43 percent, while from investment banking, which includes fees, rose 5.3 percent.

Historically known as an to the world's richest people and corporations, has been trying to do more business with ordinary consumers to diversify its business by trying to shift to relatively stable ones like and lending.

The lender's return on equity was 15.4 percent. Analysts typically like to see banks produce returns of at least 10 percent to meet their cost of capital.

Goldman's arch rival is scheduled to report quarterly results on Wednesday.

(Reporting By and in Bengaluru; Editing by Saumyadeb Chakrabarty)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 18:09 IST