Goldman Sachs (NYSE: GS) announced Tuesday that first quarter earnings nearly doubled as profits from its trading unit soared due to robust activity in bonds, currency and commodities.
The Wall Street bank said it earned $ 3.3 billion or $5.59 a share in the first quarter, compared to $1.81 billion or $3.39 a share in the same period a year ago. The result easily topped expectations as analysts predicted earnings of $4.01 a share, according to a Thomson Reuters poll.
Revenue climbed to $12.8 billion in the quarter, a 36 percent jump from the $9.4 billion registered in the same period a year earlier. The strength mainly came from the bank’s trading and principal unit, which grew revenue 43 percent to $10.25 billion.
Goldman’s strong results will likely give a bump to compensation for its employees, a widely watched item amongst Wall Street banks since the bailouts. For the first quarter, Goldman’s compensation costs rose 17 percent to $5.5 billion.
The robust quarterly results come just days after the Securities and Exchange Commission filed suit against Goldman for its disclosure practices in regard to collateralized debt obligations (CDOs), the investment vehicle that has a large bearing on the collapse in the mortgage credit market in late 2008.
“In light of recent events involving the firm, we appreciate the support of our clients and shareholders, and the dedication and commitment of our people,” added Blankfein.
