Goldman Sachs earnings dip on trading declines

Goldman Sachs reported lower quarterly profits today due to declines in some key trading divisions, but notched a big gain in financial advisory services.
Earnings for the first quarter came in at USD 2.03 billion, down 10 per cent from USD 2.26 billion a year ago.
The US investment bank cited an 11 per cent drop in revenues from fixed income, currency and commodity trading, a weak area this quarter for many Wall Street firms due to weak client demand.
Revenues in equity trading were down 17 per cent from the year-ago level.
"We are generally pleased with our performance for the quarter given the operating environment," said chief executive Lloyd Blankfein.

"Investment Banking and Investment Management generated solid results, while market sentiment shifted throughout the quarter, constraining client activity in various parts of our franchise."

Bright spots included a 41 per cent rise in financial advisory revenues due primarily to an increase in client activity in Europe.
The company also notched higher revenues in equity underwriting, thanks in part to the hot market for initial public offerings.
The results translated into earnings per share of USD 4.02, well above analyst estimates for USD 3.44.
Revenues declined 7.6 per cent to USD 9.33 billion, above the USD 8.70 billion forecast by Wall Street analysts.

Shares rose 2.0 per cent to USD 160.28 in pre-market trade.