Goldman Sachs on Tuesday reported earnings of $5.15 a share on revenue of $8 billion in the first quarter of 2017.
That’s below analyst expectations. Analysts had been expecting adjusted earnings of $5.33 a share on revenue of $8.32 billion.
The results are striking, as JPMorgan, Citigroup, Wells Fargo, and Bank of America all reported earnings ahead of analyst estimates.
“The operating environment was mixed, with client activity challenged in certain market-making businesses and a more attractive backdrop for underwriting in our investment banking franchise,” Goldman Sachs chief Lloyd Blankfein said in a statement.
Total revenue came in below that of the fourth quarter, with investment banking the only key business line to report a quarter-on-quarter improvement.
Fixed income in particular disappointed, with revenue up just 1% on the first quarter of 2016 and down from the final three months of 2016. In comparison, Goldman Sachs' rivals have posted double-digit gains in fixed-income revenue.
Here are the key numbers:
- Investment-banking revenue of $1.7 billion were up 16% year-on-year. Fixed income, currencies, and commodities revenue, at $1.7 billion, was up just 1% on the same period last year and down 16% from the fourth quarter. Equities revenue, at $1.7 billion, was down 6% year-on-year. Investing and lending revenue were $1.5 billion, down 1% quarter-on-quarter but up sharply from the first quarter of 2016, when the unit struggled. Investment management revenue was $1.5 billion, up 12% year-on-year.