A NASCENT recovery in investment banking helped Goldman Sachs outperform expectations, with quarterly profit rising 28 per cent to $4.1bn in the first quarter of the year.

Goldman reported revenue of $14.2bn in the first quarter, up 16 per cent on last year and comfortably ahead of analyst expectations. The bank noted this reflected higher revenue across "all segments".

The results showed signs of a recovery in investment banking, with revenues in the division up 32 per cent compared to last year, thanks to a few more IPOs and takeovers.

Revenue also increased in both equity and fixed-income trading, surprising analysts who had expected revenue to fall.

"Our first quarter results reflect the strength of our world-class and interconnected franchises and the earnings power of Goldman Sachs. We continue to execute on our strategy, focusing on our core strengths to serve our clients and deliver for our shareholders," chief executive David Solomon said.

In its asset and wealth management arm, which Solomon has tried to develop in order to diversify the bank's sources of income, revenue jumped 18 per cent.

The bank set aside $318m for credit losses in the first quarter, compared to a net release of $171m in the first quarter of last year.

(c) 2024 City A.M., source Newspaper