Goldman Sachs profits boosted by uptick in mergers

NEW YORK — Goldman Sachs reported higher first-quarter profits Monday on a strong performance across most businesses, benefiting from a boost in merger activity and increased market revenues.

Profits were $3.9 billion, up 27 percent from the year-ago period and translating into much better earnings per share than expected. Revenues rose 16 percent to $14.2 billion.

The investment bank enjoyed “significantly” higher revenues in debt underwriting, as well as an uptick in equity underwriting from initial public and secondary offerings. The New York giant also pointed to an increase in completed mergers.

Goldman Sachs also won higher revenues from its markets businesses, as well as higher fees from asset and wealth management, which reflected an increase in assets under management.

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These buoyant figures were partly by a modest rise in operating expenses and $318 million in provisions for credit losses, due in part to credit card charge-offs.

High-level executive departures

The broadly positive results come despite a series of high-level executive departures in recent months that have included officials in asset management and global banking and markets.

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In the middle of 2023, Goldman Chief Executive David Solomon’s management style came into question over efforts to grow consumer banking that have been mostly abandoned.

The CEO, who was also scrutinized for his side gig as a disc jockey, undertook a series of meetings with Goldman partners to repair relations.

Solomon said Monday’s results “reflect the strength of our world-class and interconnected franchises and the earnings power of Goldman Sachs.”

Shares rose 4.0 percent in pre-market trading.