Overall, Goldman posted $2.26 billion in profit, or $5.15 a share, which was a 99 percent increase from last year's abysmal first quarter. Goldman, the fifth-largest US bank by assets, blamed weakness in commodities, currencies, and credit revenue, as well as lower commissions and fees from equities trading.
"Sorry to give you a hard time on your first call", UBS analyst Brennen Hawken told Goldman Sachs' incoming chief financial officer Marty Chavez, before returning to ask a question about a popular topic.
Shares in Goldman Sachs dipped three per cent in pre-market trading today after the bank reported first-quarter results below expectations.
Goldman reported net revenues of $8.03bn, below the $8.45bn expected by an analysts' consensus by Yahoo Finance.
Goldman follows JP Morgan Chase and Citigroup in reporting a profit jump in the first quarter.
He explained that Goldman's clients traded less with the bank because markets were calmer and because it does not lend as much as competitors. Bank of America Corp. posted higher trading revenue on Tuesday.
Trading revenue, which is Goldman's biggest contributor to total revenue, dropped 2 percent to $3.4 billion in the first quarter.
Until Tuesday, Goldman Sachs stock was arguably the poster child for the Trump Bump: During the stock market rally since the President was elected, the bank had contributed more to the rise of the Dow Jones industrial average than any other company. While Goldman trades almost every kind of financial instrument on Wall Street, its strongest traders are in commodities and currencies, both of which had wild swings this quarter that could have resulted in the miss.
Overall, Goldman's profit rose 80 percent to $2.2 billion from $1.2 billion in the first quarter of 2016, when sliding commodity prices, worries about the Chinese economy and uncertainty about USA interest rates led to weak results across Wall Street.
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.
Revenues from investment banking for the quarter came in at $1.7bn, up 16 per cent year-on-year and 15 per cent quarter-on-quarter.