Goldman Sachs beats by $1.79, beats on revs
- Reports Q1 (Mar) earnings of $14.12 per share, $1.79 better than the FactSet Consensus of $12.33; revenues rose 6.0% year/year to $15.06 bln vs the $14.77 bln FactSet Consensus.
- Investment banking fees were $1.91 billion, 8% lower than the first quarter of 2024, primarily due to significantly lower net revenues in Advisory compared with a strong prior year period, partially offset by higher net revenues in Debt underwriting, primarily driven by asset-backed and investment-grade activity. Net revenues in Equity underwriting were unchanged. The firm's Investment banking fees backlog3 increased compared with the end of 2024.
- Net revenues in Fixed Income, Currency and Commodities were $4.40 billion, 2% higher than the first quarter of 2024, reflecting higher net revenues in FICC financing, driven by significantly higher net revenues from mortgages and structured lending.
- Net revenues in FICC intermediation were slightly lower, reflecting lower net revenues in credit products, interest rate products and commodities, largely offset by higher net revenues in currencies and slightly higher net revenues in mortgages. Net revenues in Equities were $4.19 billion, 27% higher than the first quarter of 2024, due to significantly higher net revenues in Equities intermediation (primarily reflecting significantly higher net revenues in derivatives) and in Equities financing (primarily reflecting significantly higher net revenues in portfolio financing)
- Provision for credit losses was $287 million for the first quarter of 2025, compared with $318 million for the first quarter of 2024 and $351 million for the fourth quarter of 2024. Provisions for the first quarter of 2025 primarily reflected net provisions related to the credit card portfolio. Provisions for the first quarter of 2024 reflected net provisions related to both the credit card portfolio (driven by net charge-offs) and wholesale loans (driven by impairments).