Goldman Sachs reported robust earnings for the first quarter of 2025, and while they beat analyst expectations, they also portrayed a "Tale of Two Cities"-type picture. Political uncertainty and a frenzy in global markets lifted the performance of businesses like trading, while leaving others, like advising on corporate dealmaking, hurting.On Monday, the firm reported net revenue of $15.06 billion during the first quarter of 2025, up about 8.6% from $13.9 billion in the previous quarter, which concluded a ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Goldman Sachs cashed in on stock market turmoil over President Donald Trump’s tariffs — with the bank’s stock traders bagging their highest revenues ever during the first three months of this year.The US financial giant released its first-quarter esults before the opening bell on Monday, posting net profits of $4.7 billion for the first quarter of 2025 and revenues of $15.06 billion.A filing released this morning showed that its trading division reported revenues of $4.2 billion, up 27% from the same period ...

Financial Performance - Goldman Sachs reported net revenues of $15.06 billion for Q1 2025, a 6% increase year-over-year and a 9% increase quarter-over-quarter[11]. - Net earnings for Q1 2025 were $4.74 billion, with diluted earnings per share (EPS) of $14.12, compared to $11.58 in Q1 2024[7]. - Total net revenues for Q1 2025 were $15,062 million, a 9% increase from $13,869 million in Q4 2024 and a 6% increase from $14,213 million in Q1 2024[40]. - Net earnings applicable to common shareholders rose to $4,583 million, reflecting a 17% increase from $3,923 million in Q4 2024 and Q1 2024[40]. Revenue Breakdown - Global Banking & Markets generated net revenues of $10.71 billion, up 10% from Q1 2024 and 26% from Q4 2024[13]. - Investment banking revenues decreased to $1,916 million, down 7% from $2,056 million in Q4 2024 and down 8% from $2,085 million in Q1 2024[40]. - FICC intermediation revenues surged to $3,390 million, a 94% increase from $1,750 million in Q4 2024 and a 2% increase from $3,471 million in Q1 2024[40]. - The Americas contributed $9,866 million to total net revenues, representing 66% of the total, consistent with the previous quarter[39]. Expenses and Capital Management - Operating expenses for Q1 2025 were $9.13 billion, a 5% increase from Q1 2024 and a 10% increase from Q4 2024[26]. - Compensation and benefits expenses increased to $4,876 million, a 30% rise from $3,759 million in Q4 2024[40]. - Goldman Sachs returned $5.34 billion of capital to common shareholders in Q1 2025, including $4.36 billion in share repurchases[31]. - The effective income tax rate for Q1 2025 was 16.1%, down from 22.4% for the full year of 2024[31]. Assets and Supervision - Total assets increased to $1,766 billion as of March 31, 2025, compared to $1,676 billion as of December 31, 2024[41]. - Assets under supervision in Asset & Wealth Management increased by $36 billion to a record $3.17 trillion during the quarter[11]. - Total assets under supervision (AUS) increased to $3,173 billion as of March 31, 2025, up from $3,137 billion at December 31, 2024, and $2,848 billion a year ago, representing a year-over-year growth of 11.4%[44]. - The beginning balance of total AUS was $3,137 billion, reflecting a growth from $3,103 billion at the end of the previous quarter[44]. Market Performance and Inflows - Long-term AUS net inflows for the first quarter of 2025 were $29 billion, compared to $22 billion in the previous quarter and $24 billion in the same quarter last year[44]. - Fixed income saw the highest net inflows of $14 billion in Q1 2025, up from $7 billion in Q4 2024 and down from $23 billion in Q1 2024[44]. - The company reported a net market appreciation of $12 billion in Q1 2025, contrasting with a depreciation of $58 billion in the previous quarter[44]. - Alternative investments saw a net inflow of $4 billion in Q1 2025, down from $11 billion in Q4 2024, while equity investments had a net inflow of $11 billion, up from $4 billion in the previous quarter[44]. Capital Ratios and Equity - The common equity tier 1 capital ratio was 14.8% as of March 31, 2025, down from 15.0% as of December 31, 2024[42]. - The total shareholders' equity was reported at $123,354 million, with tangible common shareholders' equity at $101,969 million after accounting for preferred stock and intangible assets[46]. Workforce and Risk Management - The headcount as of March 31, 2025, was 46,600, a 5% increase from 44,400 in Q1 2024[40]. - Average Daily VaR for Q1 2025 was $91 million, a decrease from $96 million in Q4 2024[43]. - Provision for credit losses was $287 million for Q1 2025, down from $318 million in Q1 2024[24].

Core Viewpoint - Goldman Sachs is expected to benefit from the recent market environment, with analysts anticipating strong first-quarter earnings due to increased trading activity [1][2]. Group 1: Earnings Expectations - Goldman Sachs is scheduled to report first-quarter earnings, with expectations of earnings per share at $12.35 and total revenue at $14.81 billion [4]. - The bank's trading revenue is projected to include $4.56 billion from fixed income and $3.65 billion from equities [4]. Group 2: Market Conditions - Equities trading revenue surged by 48% at JPMorgan Chase and 45% at Morgan Stanley, attributed to market volatility during the early months of President Trump's administration [2]. - The buoyant market conditions during the quarter ending March 31 are expected to support Goldman Sachs' wealth and asset management division, which is considered a key growth area by CEO David Solomon [2]. Group 3: Market Challenges - Despite the positive outlook, Goldman Sachs shares have dropped by 14% this year, reflecting the impact of escalating trade tensions initiated by Trump [3]. - Analysts are particularly interested in insights from CEO David Solomon regarding his discussions with corporate clients and institutional investors amid the current market uncertainty [3].

Earnings Report - Goldman Sachs is set to release its first-quarter earnings results on April 14, with expected earnings of $12.35 per share, an increase from $11.58 per share in the same period last year [1] - The projected quarterly revenue is $14.81 billion, compared to $14.21 billion a year earlier [1] Analyst Ratings - JMP Securities analyst Devin Ryan has maintained a Market Outperform rating for Goldman Sachs, while lowering the price target from $625 to $600 [2] Dividend Information - Goldman Sachs currently offers an annual dividend yield of 2.45%, translating to a quarterly dividend of $3.00 per share, or $12.00 annually [2] - To achieve a monthly income of $500 from dividends, an investment of approximately $244,900 or around 500 shares is required [3] - For a more modest monthly income of $100, an investment of $48,980 or around 100 shares is needed [3] Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in stock price and dividend payments [4] - For example, if a stock pays an annual dividend of $2 and is priced at $50, the yield is 4%. If the price rises to $60, the yield drops to 3.33% [4] Stock Performance - Shares of Goldman Sachs fell by 5.2%, closing at $489.80 on Thursday [5]

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Goldman Sachs (GS) shares soared 11.8% in the last trading session to close at $516.87. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13% loss over the past four weeks.Goldman Sachs witnessed a strong price increase driven by the President Donald Trump's announcement on April 9, 2025, of a 90-day suspension of tariffs for most trading partners, excluding China. The tariff suspension eased immediate worries about escalating trad ...

Goldman Sachs (NYSE: GS ) is currently trading at a P/E ratio of 10.51x . Despite this low P/E ratio, the company has maintained a strong historical growth rate that, I think, will continue into the future, and the market could repriceA passionate college student looking to build a career in the field of finance. Currently studying for CFA level 1 examination and pursuing BBA at nalsar university Hyderabad. Looking to contribute to investors by making stock research easy.Analyst’s Disclosure: I/we have no s ...

Goldman Sachs Group economists reportedly issued a note predicting a recession due to new U.S. tariffs and then retracted that forecast a little over an hour later after President Donald Trump paused the reciprocal tariffs.This happened Wednesday (April 9) and reflected the challenges analysts and investors face in making decisions as the administration’s trade policy evolves, Bloomberg reported Wednesday.In its initial note, the Goldman Sachs team said there was a 65% chance of a recession in the next 12 m ...