first-quarter profit beat Wall Street estimates as a recovery in underwriting and deal making boosted its investment banking unit, helping it post the highest earnings per share since 2021.
The Federal Reserve has so far managed to steer the economy toward a so-called soft landing, in which it raises interest rates and tames inflation while avoiding a major downturn. “A rebound in a variety of capital market sensitive revenue areas may finally be under way, while an exit from the ill-fated entry into consumer businesses has removed some headline risk,” said Stephen Biggar, banking analyst at Argus Research.
The asset and wealth management division generated record quarterly management fees of $2.45-billion. Meanwhile, assets under supervision rose to a record $2.85-trillion with wealth client assets at $1.5-trillion. Goldman is slimming down its ill-fated consumer banking operations after they lost billions of dollars. It has already taken big writedowns on GreenSky, a home improvement lender it bought and sold two years later.Top proxy adviser Institutional Shareholder Services urged shareholders to vote for the bank to split its chairman and CEO roles, both of which are currently held by Solomon. ISS cited his “missteps and steep losses” in a report to investors.