Goldman Sachs surpasses revenue and earnings expectations due to increased investment-banking fees

Goldman Sachs released their first-quarter earnings on Monday, exceeding Wall Street’s expectations and causing their stock price to rise by 3.7% in premarket trading. The investment bank reported $14.2 billion in net revenue, a significant 16% increase from the previous year’s first quarter and 26% higher than the fourth quarter of 2023. Additionally, they reported earnings per share of $11.58, surpassing consensus forecasts on both metrics.

The global banking and markets division saw a 15% increase in net revenue year over year, reaching $9.7 billion. This growth was largely driven by a 32% rise in investment-banking fees, totaling $2.1 billion. Net revenue also rose by 10% in both the equities and fixed income, currency, and commodities segments, reaching $3.3 billion and $4.3 billion respectively.

Goldman’s asset and wealth management arm experienced an 18% increase in net revenue, reaching $3.8 billion aided by record quarterly management and other fees. Their assets under supervision rose by $36 billion in the first quarter to a record $2.85 trillion. CEO David Solomon mentioned in the earnings release that their strong results reflect the power of their interconnected franchises and the execution of their strategy focused on serving clients and delivering for their shareholders.