Apr 15, 2024 - Economy
Goldman delivers
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Goldman Sachs posted a 28% gain in net income in the first quarter, a welcome surprise for investors who pushed the stock up nearly 3% on the day.
Why it matters: This was a big quarter for Goldman and for CEO David Solomon, who's been trying to put the company's ill-fated move into consumer banking in the rear-view mirror.
Between the lines: Goldman delivered for Q1 today on the back of its traditional strengths.
- It recorded $4.32 billion in revenue from fixed-income trading, and $3.31 billion in equity, both coming in above expectations.
- It also surprised on deal advisory, booking $1 billion in fees in the quarter driven mainly by activity from strategics. (Solomon noted on a conference call that private-equity activity was still "muted.")
- And revenue from equity and debt underwriting both rose significantly over the last year as industry volumes increased.
The bottom line: It all contributed to a rebound in Goldman's annualized return on equity (above 👆), which came back in line with the firm's targets.
