Goldman Sachs' profit jumps as traders deliver gains

Core Insights - Goldman Sachs reported a 15% increase in first-quarter profit, driven by record revenue in equities trading and improved fixed income results [1][2] - The bank's profit rose to $4.74 billion, or $14.12 per share, compared to $4.13 billion, or $11.58 per share, a year earlier [2] - Market volatility and uncertainty over tariffs are influencing investor sentiment and economic projections [1][6] Financial Performance - Equities trading revenue surged by 27% to a record $4.2 billion as investors adjusted their portfolios in response to new tariffs [5] - Fixed income, currency, and commodities trading revenue increased by 2% to $4.4 billion [5] - Investment banking fees fell by 8% to $1.9 billion in the quarter, indicating potential challenges ahead [6] Market Context - The S&P 500 index has dropped approximately 9% year-to-date, reflecting broader market turbulence [6] - Concerns over tariffs and trade barriers are leading to caution among corporate clients, which may limit growth in the coming months [6][10] - Goldman's shares have decreased by 12% since the announcement of tariffs, while competitors JPMorgan and Morgan Stanley have also seen declines [8] Asset Management - Revenue from Goldman's asset and wealth management division fell by 3% to $3.68 billion, despite managing a record $3.17 trillion in assets [9] - The bank set aside $287 million for credit losses, a decrease from $318 million the previous year [10] Executive Compensation - CEO David Solomon received an $80 million stock bonus to remain in his position for another five years, alongside a similar retention bonus for President John Waldron [11] - There is pushback from proxy advisers regarding the perceived excessiveness of these compensation packages [14]