Goldman Sachs delivers huge earnings beat on trading bonanza

Goldman Sachs announce first-quarter earnings Tuesday morning, smashing analyst expectations.

The bank reported earnings of $6.95 a share, well ahead of analyst expectations of $5.56, and the third highest on record. Here are the key numbers:

• Revenue: The bank delivered $10.4 billion in revenues, well ahead of analyst expectations of $8.75 billion. It was the best quarterly revenue figure in three years, and up 25% from the same period a year earlier.
• Net income: Net income came in at $2.8 billion, up from $2.2 billion expected.
• Investment banking: The investment banking business delivered revenues of $1.8 billion, with the debt capital markets business posting its second highest revenue number. The bank said that was driven by investment-grade, leveraged finance, and asset-backed activity. In equities, initial public offering activity also picked up.
• Trading: Institutional client securities posted revenues of $4.4 billion, with fixed income and equities both having their best quarter in three years. Fixed income revenues, at $2.1 billion, were up 23% from a weak first quarter, driven by better revenues in currencies, commodities, and credit. In equities, revenues were $2.3 billion.
• Investment management: Goldman’s funds business delivered record revenues of $1.8 billion, with assets under supervision increasing to a record $1.5 trillion.
• Investing and lending: Net revenues were $2.1 billion, up 43% from last year.