NEW YORK (CNNMoney)
Goldman Sachs (GS, Fortune 500) reported first quarter earnings Thursday that handily beat analyst estimates
The firm said revenue from investment banking, which includes such activities as advising mergers and acquisitions and underwriting initial public offerings, was the highest since 2007 -- before the financial crisis.
"That's the kick we were looking for," said Marty Mosby, a bank analyst with Guggenheim Securities in Memphis, Tennessee. Acting a strategic adviser to companies is "what Goldman really excels at," he said.
Shares popped over 1.5% in early trading.
Goldman managed to outperform despite having overall revenues and profits that were down from a year ago.
Like its rivals on Wall Street, Goldman's revenue from bond trading, traditionally a money engine for the bank, fell as interest rates have stayed persistently low.
Related: Legal costs hit Bank of America's bottom line
Still, investors seem pleased with the firm's earnings of $4.02 per share on revenues of $9.3 billion.
The bank was particularly good at keeping down expenses and boost profit margins, although its revenue was down 7.5% compared to the first three months of 2013.
Every quarter the bank sets aside money to pay employees bonuses at the end of the year. It put aside roughly $4 billion for compensation in the first quarter, or 8% lower than the same period in 2013.
There are signs that heightened regulation since the financial crisis is taking a toll even on Goldman.
The bank is not the trading powerhouse it used to be. It has largely done away with riskier activities such as proprietary trading where it would trade with its own money for profit.
But while such businesses have the potential to juice returns, investors now have a much more transparent bank with less volatility, Mosby said.
Goldman's earnings comes on the heels of Morgan Stanley's (MS, Fortune 500) solid earnings announcement Thursday that also beat forecasts. Morgan Stanley reported higher profits and revenues compared to a year ago, bolstered by strong performance in its investment banking and wealth management businesses. Shares of the firm bounced 2% early in the trading session.
First Published: April 17, 2014: 8:29 AM ET
Anda sedang membaca artikel tentang
Goldman Sachs investment banking roars back
Dengan url
https://sepakgajah.blogspot.com/2014/04/goldman-sachs-investment-banking-roars_17.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Goldman Sachs investment banking roars back
namun jangan lupa untuk meletakkan link
Goldman Sachs investment banking roars back
sebagai sumbernya
0 komentar:
Posting Komentar