Goldman Sachs on Thursday reported a drop in first-quarter profit, to $2.03 billion, reflecting declines in its fixed-income unit and overall revenues.
The profit, which translated into $4.02 a share, compared with a profit of $2.26 billion, or $4.29 a share, in the period a year earlier. Wall Street analysts had been expecting profit of $3.44 a share in the most recent quarter, according to data from Thomson Reuters.
Analysts had been expecting a soft quarter for Goldman compared with its performance a year earlier, but its results in the most recent quarter beat expectations.
“We are generally pleased with our performance for the quarter given the operating environment,†Lloyd C. Blankfein, Goldman’s chief executive, said in a statement announcing the results.
The firm generated $9.33 billion in net revenues in the quarter ended March 31, down from $10.09 billion in the period a year earlier. Analysts had been expecting net revenue of $8.7 billion.
Goldman’s investment banking unit generated net revenues of $1.78 billion, up from $1.57 billion last year.
Net revenues in Goldman’s fixed-income, currency and commodities division fell to $2.85 billion from $3.2 billion last year. The firm cited “significantly lower†revenues from interest rate products, currencies and mortgages.
While other Wall Street firms have backed away from their fixed-income businesses, Goldman has doubled down on its commitment to the unit.
On Wednesday, Bank of America reported a 15 percent drop in fixed-income trading compared with figures in the period a year earlier, a decline eclipsed by some of its peers.
Morgan Stanley, however, reported a surprising jump in revenue at its fixed-income, currency and commodities unit on Thursday, to $1.7 billion from $1.5 billion in the period a year earlier, excluding an adjustment related to the firm’s debt. The firm’s overall first-quarter profit rose 18 percent, to $1.39 billion.
Goldman and Morgan Stanley joined two other big banks that reported first-quarter earnings this week.
Bank of America reported a first-quarter loss of $276 million amid mounting legal costs relating to the financial crisis. On Monday, Citigroup surprised analysts by reporting higher-than-expected first-quarter profits, despite regulatory problems and other issues affecting the banking industry.
