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.

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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.”