Goldman Sachs may be getting its groove back
Goldman Sachs has gotten its groove back — for the first three months of 2018, at least.
After a year of uncharacteristic struggles, the bank benefited from wild swings in prices for stocks and other assets to rake in cash in the first quarter, according to an earnings report released Tuesday.
Accustomed to dominating its rivals in the trading business, Goldman spent the past year trying to figure out how to rev up an operation feeling the pressure of new regulations and facing competition from non-bank trading platforms. As a result, it lagged its closest competitors last year.
No longer. Goldman booked $10 billion in revenue for the quarter, its highest total in three years and a 25 percent increase over the same period in 2017. It reported profits of $2.8 billion, compared with $2.3 billion a year earlier.
Investors were unimpressed. After rallying in early trading on Tuesday, Goldman shares fell more than 1 percent. Its competitors’ shares had followed a similar trajectory, falling or barely moving after they reported quarterly earnings on Friday and Monday.
The stock market’s roller-coaster ride in the year’s first quarter enlivened Wall Street. It was a welcome change after a period of steady gains and muted trading activity that depressed bank profits, which are typically driven by frequent changes in the markets.