Goldman Sachs' profit beats as investment banking fuels highest earnings since 2021

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Goldman Sachs' first-quarter profit beat Wall Street estimates as a recovery in underwriting and dealmaking boosted its investment banking unit, helping it post the highest earnings per share since 2021.

The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly/File Photofirst-quarter profit beat Wall Street estimates as a recovery in underwriting and dealmaking 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. Profit rose 28% from last year to $4.13 billion, or $11.58 per share, for the three months ended March 31, higher than the $8.56 per share that analysts expected.Its shares rose 3.6% before the bell. As of Friday, they have climbed about 1% so far this year compared with a nearly 8% drop for rival Morgan StanleyRevenue from trading in fixed income, currencies and commodities rose 10% to $4.32 billion, helped by record financing revenue thanks to mortgages and structured lending.

The bank had joined its asset management and wealth management arms as part of its reorganization in 2022. , both of which are currently held by Solomon. ISS cited his "missteps and steep losses" in a report to investors.

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