Goldman Sachs Profit Rises Sharply on Strong Trading, Dealmaking
By Peter Rudegeair
Goldman Sachs Group Inc. reported sharply higher profits for the
first quarter, benefiting from a turbocharged market and an
Goldman reported quarterly profit of $6.84 billion, or $18.60 a
share, on revenue of $17.7 billion. Both measures were up
significantly from a year ago -- when the bank posted profit of
$1.2 billion on revenue of $8.7 billion -- and exceeded the
expectations of analysts polled by FactSet, who forecast profit of
$10.22 a share on revenue of $12.56 billion.
The first three months of 2021 were a frenetic period for banks'
capital markets and trading arms. Reddit-reading retail traders
sent so-called meme stocks to new heights. Record amounts of money
poured into blank-check firms, several of which announced deals
during the quarter to bring fast-growing companies including Social
Finance Inc. and Lucid Motors Inc. to the public markets.
Goldman thrived in that environment. Trading revenue rose 47%
from a year ago to $7.6 billion. The firm's investment bankers
brought in $3.8 billion in fees arranging mergers and stock and
Shares in Goldman have risen 24% since the start of 2021 and hit
an all-time high of $348.81 last month.
Write to Peter Rudegeair at Peter.Rudegeair@wsj.com
(END) Dow Jones Newswires
April 14, 2021 07:58 ET (11:58 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.