Apr 16 2013

DealBook: Goldman Posts $2.2 Billion Quarterly Profit, Beating Estimates

Newswire | Published 16 Apr 2013, 8:23 am | Comments Off on DealBook: Goldman Posts $2.2 Billion Quarterly Profit, Beating Estimates -

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The spate of strong bank earnings continues.

On Tuesday, Goldman Sachs reported first-quarter profit of $2.2 billion, or $4.29 a share, driven by strength in its investment banking business as well as its investing and lending unit.

Across Wall Street, banks are showing signs of strength. Last week, JPMorgan posted a 33 percent jump in quarterly profit, to $6.53 billion. Profit at Wells Fargo rose 22 percent, to $5.17 billion. Citigroup profit surged by 30 percent while BlackRock earnings were up 10 percent.

Goldman, like other banks, is benefiting from the ongoing improvement in the markets and the economy. While banks are adjusting to new regulation, they are finding new ways to bolster profit and cut costs, helping to drive record profit.

Goldman’s results were up from the year-ago period and well ahead of analysts’ expectations of $3.89 a share, according to Thomson Reuters. Earnings per share were up 9 percent compared with the period a year earlier. Goldman shares, however, were down 2 percent in morning trading to around $143.50 a share on a day when the broader market was up.

Analysts had been anticipating a fairly decent quarter for Goldman, in part because many of its rivals have posted strong results in their investment banking and securities divisions.

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