Goldman Sachs, a US-based investment bank, has released its financial results for Q1 of 2021. The bank crushed all forecasts and posted a massive jump in revenues and earnings.
According to the official announcement, Goldman Sachs saw net revenues of $17.7 billion in Q1 of 2021. Additionally, the investment bank reported earnings per share (EPS) of $18.60, which is significantly higher than the estimates.
Goldman Sachs reported net earnings of $6.84 billion during the first three months of 2021. The investment banking division of Goldman Sachs generated record quarterly revenues of $3.77 billion.
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Commenting on the latest financial results, David Solomon, Chairman and CEO of Goldman Sachs, said: “We have been working hard alongside our clients in preparation for a world beyond the pandemic and a more stable economic environment. Our businesses remain very well positioned to help our clients reposition for the recovery, and that strength is reflected in the record revenues and earnings achieved this quarter. I am proud of our people for the performance they’ve delivered for clients over the past year under challenging conditions and pleased that our client-centric strategy continues to drive additional value for our shareholders.”
The asset management division of Goldman Sachs performed well during the first three months of 2021 with net revenues of $4.61 billion.
Global Markets Division
Goldman Sachs mentioned that its global markets division including Equities and Fixed Income, Currencies and Commodities (FICC) generated quarterly revenues of $7.58 billion in Q1 of 2021, which is a jump of 47% compared to the first quarter of 2020. FICC saw a total revenue of $3.89 billion while equities business generated $3.69 billion in revenues in Q1 of 2021.
“Net revenues in FICC were $3.89 billion, 31% higher than the first quarter of 2020, due to significantly higher net revenues in FICC intermediation, reflecting significantly higher net revenues in mortgages and interest rate products and, to a lesser extent, commodities and credit products, partially offset by significantly lower net revenues in currencies. Net revenues in FICC financing were essentially unchanged,” Goldman Sachs mentioned in the announcement.