Net profit of the U.S. group Goldman Sachs rose 7% in the first quarter, from $2.11 billion dollars in the first three months of last year to $2.26 billion dollars as a result of rising revenues in stock and bond underwriting. The investment division made $1.57 billion in the first quarter of 2013, up by 36%. Debt underwriting also had a big contribution with record revenues of $694 million.
“We are pleased with our performance for the quarter,” said Lloyd C Blankfein, chairman and chief executive. He added: “Our strong client franchise across our businesses drove generally solid results. Still, the potential for macro-economic instability was felt in the quarter and constrained overall corporate and investor activity. We continue to be very focused on controlling our costs and efficiently managing our capital.”
Goldman Sachs was the most profitable securities company worldwide before the financial crisis. It exceeded Wall Street expectations for the first quarter of 2013. Earnings per share stood at $4.29 versus analysts’ estimates of $3.87. Revenue rose from $9.95 billion in the first quarter of 2012 to $10.9 billion, or 1%, in the first quarter of 2013.
“It was a pretty good quarter from a capital-markets perspective,” said Keith Davis, an analyst at Farr, Miller & Washington LLC, a company that manages assets of approximately $890 million, including Goldman Sachs shares.
Goldman Sachs (NYSE:GS) shares fell $2.36, 1.61%, closing at $144.10 on Monday in New York. The bank increased its dividend twice last year and repurchased shares worth $4.64 billion.
Trading revenues benefited from higher volume of bond issues carried out by companies, lower credit spreads in high-yield debt and the rise of interest-rate derivatives, said David throne analyst at JMP Securities in New York.
Citigroup reported Monday financial results better than expected after last week JP Morgan Chase, the largest U.S. bank, announced a better profit than analysts estimated. Bank of America, the second larger credit institution on the U.S. market by assets, will publish financial results on Wednesday and Morgan Stanley is expected to do the same on Thursday.
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