Friday, July 25th14.4°C
22663

Goldman Sachs' earnings fall 11 per cent as bond trading slumps; bank still beats expectations

NEW YORK, N.Y. - Goldman Sachs' earnings fell in the first quarter as bond trading slumped, but the results still came in ahead of what investors expected as other parts of the bank performed well.

EARNINGS AND REVENUE: The bank earned $1.95 billion in the quarter, down 11 per cent from $2.19 billion in the same period a year earlier. The earnings were equivalent to $4.02 a share, compared with $4.29 in the first quarter of 2013.

Revenue totalled $9.33 billion, down 8 per cent from $10.09 billion a year earlier.

EXPECTATIONS EXCEEDED: Goldman's earnings easily beat the $3.49 a share that analysts surveyed by FactSet predicted. First-quarter revenue also beat analysts' expectations of $8.7 billion. Goldman's stock rose 22 cents, or 0.1 per cent, to $157.44.

BOND TRADING SLUMP: Revenue from the bank's bond trading business fell 11 per cent to $2.85 billion. Goldman, like other big Wall Street banks including JPMorgan and Citigroup, has seen bonding trading slump in the first quarter. The business is "operating in a challenging environment and levels of activity generally remained low," Goldman said in its earnings release.

THE BRIGHT SPOT: Revenue at Goldman's investment banking unit rose, driven partly by higher client activity in its financial advisory business in Europe and more stock underwriting. The bank's investment banking revenue rose 13 per cent to $1.78 billion in the first quarter.

COMPENSATION EXPENSE: Compensation expense, the banks biggest single cost, was $4.01 billion, down 8 per cent from $4.34 billion a year earlier.

The Canadian Press


Read more Business News

22557


Recent Trending




Today's Market
S&P TSX15394.45+0.07
S&P CDNX1011.65-0.58
DJIA17083.80-2.83
Nasdaq4472.107-1.59
S&P 5001987.98+0.97
CDN Dollar0.9292-0.0015
Gold1297.50-7.00
Oil104.30-0.29
Lumber326.00+0.20
Natural Gas3.851+0.004

 
Okanagan Companies
Pacific Safety0.200.00
Knighthawk0.01-0.005
QHR Technologies Inc1.17+0.02
Cantex0.08+0.02
Anavex Life Sciences0.28-0.045
Metalex Ventures0.08+0.01
Russel Metals35.57-0.08
Copper Mountain Mining2.82+0.06
Colorado Resources0.205-0.01
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.19+0.01

 



22315

FEATURED Property
19394944401 Westside Road
$499,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Geopolitical tensions rattle markets

The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...

_








Member of BC Press Council


22707