Goldman Sachs Profits Drop 60% In Q1
Goldman Sachs’ profits were slashed 60% in Q1, as the investment banking giant saw its lowest Q1 revenue since CEO Lloyd Blankfein took the helm in 2006.
Goldman, the worst performer on the Dow Jones this year, saw its net income decline to $1.14B from $2.84B a year earlier. The company is trying to ride out a year-long bond-trading slump aggravated by market turmoil and new regulations, Bloomberg reports.
It was “a quarter to forget,” Glenn Schorr, an analyst at Evercore ISI, says. The firm’s 6.4% return on equity, a gauge of profitability, was “un-Goldmanlike.”
On top of profit woes, the company has been staring down US courts—Goldman just agreed to pay out $5.1B for its fraudulent MBS activity in the run-up to the financial crisis, part of a string of recent settlements in the banking industry. [Bloomberg]