NEW YORK -- Goldman Sachs said it saw a double-digit rise in its first-quarter profits on Monday, lifted broadly by the stock and bond markets' performances in the first months of the year.
The strong quarter comes after Goldman struggled most of 2023 as higher interest rates put a pause on companies doing deals and mergers. But as executives have adjusted and interest rates appear to be heading lower, Goldman has benefited from the change in attitude.
The New York-based investment bank posted a profit of $4.13 billion, up 28% from a year earlier. The company earned $11.67 a share for the quarter, well above analysts' expectations.
Most of Goldman's underlying businesses had a strong quarterly performance. Investment banking fees were up 32% in the quarter at $2.08 billion. The bank said most of the growth was driven in debt underwriting, likely as a result of higher interest rates requiring companies to refinance their bonds and debt.
Trading in Goldman's fixed income, currencies and commodities department rose 10% in the quarter, with revenue of $4.32 billion. Stock trading revenue was also up 10%.
In Goldman's asset management business, where the bank manages money for the wealthy and large companies and foundations, revenuewas up 18%.
Goldman's return on equity, a measure of how well an investment bank does with its underlying assets, was 14.8% on an annualized basis. Banks like Goldman typically want to keep this metric above 10%.