Goldman Sachs Group Inc (GS.N) reported a massive jump in first-quarter profit on Wednesday, as Wall Street’s biggest investment bank capitalized on record levels of global dealmaking activity.
It also benefited from a favorable comparison to a year earlier when it set aside more funds to cover potential corporate loan losses due to the coronavirus pandemic and marked down the value of some assets.
Net earnings applicable to common shareholders rose to $6.7 billion in the quarter ended March 31 from $1.12 billion in the same period a year ago.
Earnings per share rose to $18.60 from $3.11 a year earlier. Analysts on average had expected a profit of $10.22 per share, according to the IBES estimate from Refinitiv.
In March, Goldman had said its losses from a fire sale of stocks triggered by a meltdown of New York investment fund Archegos were immaterial.