(AOF) – If the results revealed Friday by JPMorgan, Citigroup and Wells Fargo were received coldly by investors, the publication from Goldman Sachs delights them. The action of the famous American investment bank gained 4.51% to 407.06 dollars and posted the strongest increase in the Dow Jones index. Its profits far exceeded expectations thanks to the strong performance of its capital markets and bond brokerage businesses. These businesses have historically been the strong points of the competitor of JPMorgan and Morgan Stanley.
In the first quarter, Goldman Sachs’ net income jumped 28% to $4.13 billion, or $11.58 per share. The latter is well above the FactSet consensus of $8.73. Activity also turned out to be more dynamic than expected: Goldman Sachs’ revenues increased by 16% to $14.21 billion. Wall Street expected only $12.94 billion.
The investment bank’s revenues jumped 32% to $2.08 billion thanks to sustained activity in the primary equity and bond markets. Their revenues increased by 45% to $370 million and 38% to $699 million, respectively. Advisory activity (mergers & acquisitions) increased by 24% to $1 billion.
Analysts also highlight the outperformance of bond brokerage (FICC), whose revenues increased by 10% to $4.32 billion. Within this business, Goldman Sachs generated a record amount of funding at $852 million. Equity brokerage also increased by 10% to 3.311 billion, including 1.3 billion in financing.
The financial institution posted an 18% jump in revenue from its asset and wealth management activities to $3.79 billion. Assets under management increased by 36 billion over the quarter thanks to a positive market effect to 2,848 billion dollars.
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