Market turmoil lifts Goldman's trading, hurts dealmaking business

Core Insights - Goldman Sachs reported strong earnings for Q1 2025, with a net revenue of $15.06 billion, reflecting an 8.6% increase from the previous quarter and a 6% increase year-over-year, despite a mixed performance across its divisions [2][3]. Financial Performance - The global banking and markets division generated net revenue of $10.71 billion, a 10% increase from the previous quarter and a 26% increase from the same period last year, driven by record equities trading revenue of $4.19 billion, which was up 27% year-over-year [4]. - Investment banking fees totaled $1.91 billion, down 8% from Q1 2024, with advisory revenue dropping 22% year-over-year to $792 million, and down 18% from the previous quarter [8]. - The asset and wealth management division saw assets under supervision rise to a record $3.17 trillion, with a $36 billion increase in Q1, generating $3.68 billion in total revenue [9]. Market Environment - The current political uncertainty and market volatility have negatively impacted the dealmaking environment, although Goldman Sachs reported an increase in its backlog of deals [5]. - The firm’s CEO highlighted that clients are turning to Goldman Sachs for execution and insight during uncertain times, indicating confidence in the firm's ability to support clients despite a changing operating environment [3].