The investment bank attributed the increased earnings to its businesses that helped its clients recover from the impact of the pandemic
Goldman Sachs Tower at 30 Hudson Street in Jersey City. (Credit: Crzrussian/Wikipedia.)
Goldman Sachs has reported a net profit of $6.71bn, or $18.60 per diluted share, for the first quarter ended 31 March 2021, a 498% increase compared to $1.12bn, or $3.11 per diluted share, for the corresponding quarter in 2020.
The US-based investment bank reported net revenues of $17.7bn for the first quarter (Q1) of 2021, an increase of 102% compared to $8.74bn for the same quarter in 2020.
The company’s total operating expenses for Q1 2021 increased by 46% to $9.43bn compared to $6.45bn for the same period in 2020.
The bank attributed the record high revenues and earnings for the quarter, to its businesses that helped its clients in recovering from the impact of the pandemic.
Goldman Sachs chairman and CEO David Solomon said: “We have been working hard alongside our clients in preparation for a world beyond the pandemic and a more stable economic environment.
“Our businesses remain very well positioned to help our clients reposition for the recovery, and that strength is reflected in the record revenues and earnings achieved this quarter.
“I am proud of our people for the performance they’ve delivered for clients over the past year under challenging conditions, and pleased that our client-centric strategy continues to drive additional value for our shareholders.”
Goldman Sachs’ investment banking business reported net revenues of $3.77bn for Q1 2021, an increase of 73% compared to $2.18bn for the corresponding quarter in the previous year.
The bank’s asset management business reported net revenues of $4.61bn for Q1 2021, reflecting strong net revenues in equity investments.
Its consumer & wealth management business reported net revenues of $1.73bn for Q1 2021, a 16% increase compared to $1.49bn for the same quarter last year.
The bank’s global markets unit reported net revenue of $7.58bn for Q1 2021, an increase of 47% compared to $5.16bn for the corresponding quarter in 2020.