Goldman Sachs profit falls in first quarter as dealmaking sputters

Goldman Sachs Group Inc’s (GS.N) first-quarter profit dropped as the worst three months for dealmaking in more than a decade eroded the Wall Street giant’s fees from investment banking, while its consumer unit continued to weigh on the results.

Profit fell to $3.09 billion in the quarter ended Mar. 31 compared with $3.83 billion a year earlier, while earnings per share slid to $8.79 from $10.76 last year, the bank reported on Tuesday.

Global mergers and acquisitions activity shrank to its lowest level in more than a decade in the first quarter of 2023, according to data from Dealogic.

Net revenue in the quarter fell 5% at $12.22 billion. It included a loss of about $470 million related to a partial sale of the Marcus loans portfolio and the transfer of the rest of the portfolio to held-for-sale.

Goldman is also rejigging its strategy after a foray into consumer banking, which Chief Executive David Solomon had championed for years, flopped.

This report’s information was first seen on REUTERS; to read more, click this link.