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Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs Group
After the report, shares fell more than 3 percent, reversing a premarket gain of more than 1 percent ahead of the announcement.
“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,” Lloyd C. Blankfein, chairman and chief executive officer of Goldman Sachs, said in a release.
Goldman said “significantly” lower net revenues from commodities and currencies offset “significantly” higher net revenues in mortgage products. Stock trading revenue was hit by declines in commissions and fees, reflecting lower volumes in the U.S.
A jump in trading revenue boosted major bank earnings in the last few quarters and continued to help the earnings of Citigroup and JPMorgan Chase in the first quarter. Bank of America also reported earnings Tuesday, beating or meeting Wall Street expectations on almost every single metric.
The Standardized Common Equity Tier 1 ratio fell to 14.2 percent in the first quarter, down from 14.5 percent in the fourth quarter of 2016.
For the first quarter of 2016, the financial giant reported diluted earnings per share of $2.68 on revenue of $6.34 billion.
The financial stocks have led the U.S. stock market rally since the presidential election, but have struggled this year with the sector closed Monday just about flat year-to-date.
Goldman shares are up more than 30 percent since the election but are lower by a little more than 5 percent for the year so far, as of Monday’s close.
— CNBC’s Juan Aruego contributed to this report.
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Source : CNBC