Goldman Sachs profit surpasses estimates for lower expenses and higher advisory fees By Reuters

(Reuters) – Goldman Sachs Group Inc. (NYSE 🙂 beat the quarterly earnings forecast on Monday as the bank gained more guidance on mergers and acquisitions and expenses decreased due to lower compensation costs.

The bank's total revenues, however, fell 13% in the first quarter and missed analysts' estimates, with three of its four core businesses reporting lower revenues.

Institutional client services, the unit that hosts the bank's trading activities, experienced the largest decline, with less market volatility associated with the longest US government closure affecting revenue from operations. on stocks and bonds.

Trade slowed considerably during the quarter as worries over the US-China trade war eased and markets rebounded after the sharp losses recorded in December 2018.

Trading revenue declined 18% to $ 3.61 billion, with shares declining 24% and fixed income, currency and commodities down 11%.

JPMorgan Chase & Co (NYSE 🙂 on Friday announced a 10% decline in adjusted market turnover. Adjusted net income of equities fell 13%, while fixed income declined by 8%.

"We are delighted with our performance in the first quarter, particularly in the context of a startling mid-year," said David Solomon, managing director of Goldman Sachs.

Investment banking activities were stable mainly due to lower underwriting activities, which included IPOs.

A prolonged government shutdown earlier this year resulted in skeletal staffing at the US Securities and Exchange Commission, resulting in the postponement of several IPOs during the quarter.

Income from financial advice was the only positive point: it increased 51% during the quarter.

Goldman's net income attributable to common shareholders fell to $ 2.18 billion, or $ 5.71 per share, in the quarter ended March 31, from $ 2.74 billion, or $ 6.95 per share. action, a year ago.

Analysts were looking for a profit of $ 4.89 per share, according to Refinitiv's IBES data.

Total operating expenses decreased by 11% to $ 5.86 billion.