Home / World / Goldman Sachs “Beats the Street” With Revenue Down 13%, Income Down 21%

Goldman Sachs “Beats the Street” With Revenue Down 13%, Income Down 21%



Quiet Quarter hurts Goldman's results

The Wall Street Journal reports that Quiet Quarter on Wall Street damages Goldman's results

Earnings of Goldman Sachs Group Inc. GS -3.82% in the first quarter fell sharply as operations and subscriptions decelerated, showing the urgency for the company to turn away from these unpredictable Wall Street businesses.

The bank's profit of $ 2.25 billion, or $ 5.71 per share, was 21% lower than in the same period of the previous year. Revenue fell in three of Goldman's businesses and remained stable in his quarter. Cost cuts and lower taxes helped earnings to exceed silenced expectations, but stocks still fell more than 3% in afternoon trading.

Goldman is in the midst of a multi-year effort to diversify trade, where profits have declined since the financial crisis. He is developing a consumer bank, developing a cash management product for corporate treasurers, partnering with Apple Inc. on his first credit card and creating data services that he hopes will attract new types of business customers.

But the pivot is slow. The bank's first quarter results show that, for now, Goldman is stuck in limbo, spending more than $ 1 billion on new initiatives while still tied to old resources that are struggling.

Goldman Sachs Short Bonus Boat

The Guardian reports that Goldman Sachs reduces the bankers bonus bonus by 20%.

G $ WTIColdman Sachs has reduced by 20% the cash it reserves to pay bankers' bonds after reporting lower profits in the first three months of the year.

The Wall Street firm said it was cutting its salaries and benefits by $ 798 million (£ 609 million) to $ 3.3 billion, a move that will affect executives, senior managers and lower-level staff.

The bank is also grappling with the consequences of the 1MDB scandal, which has involved multiple investigations into corruption in Malaysia's sovereign wealth fund. Goldman said it has reserved $ 37 million to cover the legal and regulatory costs of the period.

Welcome to the earnings season.

Mike "Mish" Shedlock

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