The Covid-19 pandemic has dampened the performance of Goldman Sachs in Q1 2020, with its profit plunging 46% year-on-year.
The hardest hit was the asset management unit, offset by strong results in the trading arm.
Q1 2020 highlights
Goldman Sachs’ net earnings for the three month period ending 31 March 2020 were $1.21bn, versus $2.25bn in Q1 2019. Net revenues remained flat at $8.74bn.
The bank also set aside $937m for covering loan losses, up from $224m in Q1 2019.
The higher provisions were related to corporate loans due to the energy sector and the market turmoil caused by the Covid-19 crisis.
Net revenues in Wealth management of $1.21bn in the January-March period were 18% higher than a year ago.
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The Asset Management unit reported a $96m revenue loss in Q1 2020, as against $1.79bn in the prior year.
This was driven by significant net losses in lending, debt investments and equity investments.
Global Markets reported a 28% surge in year-on-year net revenues to $5.16bn.
Fixed Income, Currency and Commodities (FICC) net revenues jumped 33% to $2.97bn, its highest quarterly performance in five years.
Equities reported its second-highest quarterly performance in five years with net revenues increasing 22% to $2.19bn.
Goldman Sachs chairman and CEO David Solomon said: Our quarterly profitability was inevitably affected by the economic dislocation.
“As public policy measures to stem the pandemic take root, I am firmly convinced that our firm will emerge well-positioned to help our clients and communities recover.”