Goldman Sachs reported net revenues of $12.22bn for Q1 2023, a 5% decline compared to $12.93bn for the same period of 2022, attributing the decrease to the partial sale of its Marcus loans portfolio and transfer of the remainder for sale
Goldman Sachs Tower in Jersey City, US. (Credit: Akshay Sadarangani on Unsplash)
Goldman Sachs has reported a net income of $3.08bn, or $8.79 per diluted share, for the quarter ended 31 March 2023, a 19% decline compared to $3.83bn, or $10.76 per diluted share, for the same quarter of 2022.
The company reported operating expenses of $8.4bn for the first quarter (Q1) of 2023, a 9% increase compared to $7.71bn for the same quarter in the previous year.
Goldman Sachs reported a net interest income of $1.78bn for Q1 2023, a 3% decrease compared to $1.82bn for the corresponding period in 2022.
The company reported net revenues of $12.22bn for Q1 2023, a 5% decline compared to $12.93bn for the same period in 2022.
Goldman Sachs attributed the decrease in net revenues to the partial sale of its Marcus loans portfolio and the transfer of the remainder of the portfolio to held for sale.
Goldman Sachs Group chairman and chief executive officer David Solomon said: “The events of the first quarter acted as another real-life stress test, demonstrating the resilience of Goldman Sachs and the nation’s largest financial institutions.
“Our deeply rooted risk management culture, strong liquidity and robust capital position enabled us to continue to support our clients and deliver solid performance.
“We are operating from a position of strength and remain focused on executing our strategy to further grow our leading Global Banking & Markets and Asset & Wealth Management franchises.”
The Global Banking and Markets division of Goldman Sachs reported net revenues of $8.44bn for Q1 2023, a 16% decline compared to $10.06bn for the same quarter the previous year.
The investment bank’s Asset and Wealth Management business reported net revenues of $3.22bn for Q1 2023, a 24% rise compared to $2.6bn for the same period in 2022.
The company’s Platform Solutions division reported net revenues of $564m for Q1 2023, an increase of 110% compared to $268m for the same quarter last year.
In a separate development, Goldman Sachs is looking to sell its Greensky fintech business, in a move to scale down its retail ambitions, reported Reuters.
Greensky is a financial technology company that supports banks and merchants in providing loans to consumers for home improvement, solar, healthcare, and other purposes.
In September 2021, Goldman Sachs acquired Greensky for $2.24bn, with plans to combine GreenSky’s products with those offered by its Marcus digital bank.