Goldman Sachs profit jumps on record global dealmaking
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[NEW YORK] Goldman Sachs Group on Wednesday blew past Wall Street expectations for first-quarter profit, as the US investment bank capitalised on record levels of global dealmaking activity.
An unprecedented boom in private firms merging with listed shell companies to go public has helped the Wall Street giant earn handsome fees, while its global markets unit's performance was up 47 per cent on the year.
The bank also benefited from favorable comparisons to last year when it set aside more funds to cover potential corporate loan losses due to the coronavirus pandemic and took markdowns to some assets.
Net earnings applicable to common shareholders rose to US$6.7 billion in the quarter ended March 31 from US$1.12 billion in the same period a year ago.
Earnings per share rose to US$18.60 from US$3.11 a year earlier.
Analysts on average had expected a profit of US$10.22 per share, according to the IBES estimate from Refinitiv.
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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.
Total revenue surged 102 per cent to US$17.7 billion in the quarter.
REUTERS
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