Published: Wed, April 19, 2017
Economy | By Melissa Porter

Goldman, Bank of America income, revenue rise in Q1

The business's quarterly revenue was up 12.3% compared to the same quarter previous year.

Goldman Sachs Group Inc reported earnings that missed Wall Street expectations on Tuesday as weak trading revenue outweighed gains in other areas, sending its shares down almost 3 percent in premarket trading.

Goldman Sachs posted first-quarter earnings of $5.15 per share and revenue of $8.026 billion.

Goldman's net income rose 1.2 percent to $1.68 billion in the first quarter, from $1.66 billion the same period a year ago.

In a statement, Goldman Chief Executive Lloyd Blankfein described the business environment as "mixed" with client activity "challenged".

Goldman managed to overcome a surprise drop in revenue in its trading business. Bank of America also reported earnings Tuesday, beating or meeting Wall Street expectations on nearly every single metric. Vetr upgraded shares of Goldman Sachs Group from a "sell" rating to a "hold" rating and set a $240.50 target price for the company in a report on Tuesday, December 20th.

Shares of the company slid 2.2% to $221.21 in early trading at 7:44 NY.

The hit to Goldman's trading in the first quarter is a rare misstep for a bank known to have some of the best traders on Wall Street.

As of 1338 GMT shares in the lender were down by 2.77% to $220.0 in pre-market trading. Given that its peers found universal success in trading during the first quarter, Wall Street wasn't happy to take that answer at face value, perhaps believing that the decline in trading income may be more than just a one-time occurrence. But the results were well short of analyst forecasts of US$5.31 per share, on average, according to Thomson Reuters I/B/E/S. Bank of America's Global Banking revenue rose 11% to a record of $5 billion, while Global Markets revenue rose 19% to $4.7 billion.

Revenues surged 26.6% from past year to $8.03 billion, but still missed analysts' view for $8.33 billion.

Investment-banking revenue rose 16 percent to $1.7 billion, helped by debt underwriting, where revenue advanced 25 percent to $636 million. The firm earned $8.17 billion during the quarter, compared to the consensus estimate of $7.80 billion.

Goldman Sachs also announced the repurchase of an addition 50 million shares of common stock and raised its quarterly dividend to 75 cents from 65 cents per common share.

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