Goldman Sachs profits down after 'muted' start to 2019

15 April 2019, 14:11 | Updated: 15 April 2019, 15:22

Goldman Sachs has reported a mixed bag of first quarter results after a "muted" start to the year.

The investment bank reported a first-quarter profit of $2.25bn (£1.7bn), or $5.71 a share, down from a profit of $2.83bn (£2.2bn), or $6.95 a share, in the same period a year earlier.

David Solomon, Goldman's chairman and chief executive, said: "We are pleased with our performance in the first quarter, especially in the context of a muted start to the year."

He added: "Our core businesses generated solid results driven by our strong franchise positions.

"We are focused on new opportunities to grow and diversify our business mix and serve a broader range of clients globally.

"With improving momentum across our businesses, we are confident that Goldman Sachs will generate attractive returns for our shareholders."

The bank's total revenue fell 13% compared with a year ago, with three of its four main businesses seeing a drop.

The biggest drop was seen in total institutional client services, which houses the bank's trading business, with market volatility and the long US government shutdown's effects on equity and bond trading revenue being blamed.

Trading slowed considerably and investment banking was also flat.

Only financial advisory revenue offered a positive note, up 51% during the quarter.

It is not clear how well the bank's consumer franchise - Marcus, launched in September - has done, as the company does not itemise this in its results.

However, the bank saw a big jump in interest income during the first quarter, up 33% from a year earlier.

Goldman also recently moved into the credit card business, becoming the issuing bank for Apple's new credit card.

On Friday, JPMorgan Chase & Co reported a 10% decline in adjusted markets revenue.