Goldman Sachs "Beats the Street" With Revenue Down 13%, Income Down 21%
|Goldman Sachs leads the way this quarter on "beat the street" silliness.
Quiet Quarter Hurts Goldman’s Results
The Wall Street Journal reports Quiet Quarter on Wall Street Hurts Goldman’s Results
Goldman Sachs Group Inc.’s GS -3.82% first-quarter profit fell sharply as trading and underwriting slowed, showing the urgency of the firm’s pivot away from those unpredictable Wall Street businesses.
The bank’s profit of $2.25 billion, or $5.71 a share, was 21% lower than the same period a year ago. Revenue fell in three of Goldman’s businesses and was flat in its fourth. Cost cuts and lower taxes helped profits top muted expectations, but shares still fell more than 3% in afternoon trading.
Goldman is in the midst of a multiyear effort to diversify away from trading, where profits have dwindled since the financial crisis. It is growing a consumer bank, developing a cash-management product for corporate treasurers, partnering with Apple Inc. on its first credit card and building data services it hopes will lure new types of trading clients.
But the pivot is a slow one. The bank’s first-quarter results show that, for now, Goldman is stuck in limbo, spending more than $1 billion on the new initiatives while still tethered to old standbys that are struggling.
Goldman Sachs Cuts Bonus Pot
The Guardian reports Goldman Sachs Cuts Bankers’ Bonus Pot by 20%.
G$WTIColdman Sachs has slashed 20% from the cash it sets aside to pay bankers’ bonuses after reporting lower profits in the first three months of the year.
The Wall Street firm said it was cutting its salaries and benefits pot by $798m (£609m) to $3.3bn, a move that will hit executives, senior managers and lower-level staff.
The bank is also dealing with the fallout of the 1MDB scandal, which has involved multiple investigations into corruption at the Malaysian sovereign wealth fund. Goldman said it has set aside $37m to cover legal and regulatory costs for the period.
Welcome to earnings season.
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