Goldman Sachs earnings: Low expectations

Goldman Sachs, one of the world’s largest investment banks, recently released its earnings report for the first quarter of 2021. The results were not as impressive as some had hoped, but they were not entirely unexpected either.

The bank reported earnings per share of $18.60, which was lower than the $24.74 per share that analysts had predicted. However, the bank’s revenue of $17.7 billion was higher than the $12.6 billion that was expected.

The lower earnings per share can be attributed to a few factors. First, the bank’s trading revenue was down from the previous quarter. This is not surprising, as the first quarter of the year is typically slower for trading activity. Additionally, the bank had to set aside more money for potential loan losses, which also impacted its earnings.

Despite the lower earnings, Goldman Sachs’ CEO, David Solomon, remained optimistic about the bank’s future. He noted that the bank’s investment banking division had a strong quarter, with revenue up 73% from the previous year. The bank also saw growth in its asset management division, with assets under supervision reaching a record high of $2.1 trillion.

Solomon also highlighted the bank’s commitment to sustainability and social responsibility. He noted that the bank had committed to investing $150 billion in sustainable finance and renewable energy by 2030. The bank has also pledged to reach net-zero carbon emissions by 2030.

Overall, while Goldman Sachs’ earnings may have fallen short of some expectations, the bank remains well-positioned for the future. Its strong investment banking and asset management divisions, combined with its commitment to sustainability, make it a leader in the financial industry. As the economy continues to recover from the pandemic, Goldman Sachs is poised to continue its success.