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Goldman Sachs (GS) reported first-quarter earnings results on Wednesday that far exceeded analysts’ expectations, as an incipient economic and investment banking boom helped the bank reap record revenue.
Here are the key figures versus expectations, according to Bloomberg:
Adjusted earnings per share (EPS): $18.60 per share vs. $10.07
Revenue: $17.70 billion vs. $12.55 billion
Goldman’s record quarterly net revenues of $17.7 billion were more than double the comparable year-ago quarter.
“We have been working hard alongside our clients in preparation for a world beyond the pandemic and a more stable economic environment. Our businesses remain very well positioned to help our clients reposition for the recovery, and that strength is reflected in the record revenues and earnings achieved this quarter,” CEO David Solomon said in the release.
Goldman’s investment banking business posted a record quarter with revenues of $3.77 billion, with equity underwriting hitting a record. Investment banking accounted for 21% of Goldman's quarterly revenue.
"It was an absolute blockbuster quarter," JMP Securities senior research analyst Devin Ryan told Yahoo Finance on Tuesday about Goldman Sachs' earnings. "The reality is the capital market's backdrop is as good as it's ever been."
The firm’s global markets business posted revenues of $7.58 billion, up 47% from the same quarter a year ago and its highest quarter since 2010. Revenue for FICC hit $3.89 billion, while equities revenue hit $3.69 billion. FICC and equities combined accounted for 43% of the firm's quarterly revenue.
Asset management delivered revenue of $4.61 billion, while the consumer and wealth management division reported revenue of $1.74 billion.
Julia La Roche is a correspondent for Yahoo Finance. Follow her on Twitter.