Goldman Sachs Profit Nearly Halves on Slowdown in Dealmaking

Goldman Sachs Profit Nearly Halves on Slowdown in Dealmaking
The Goldman Sachs company logo on the floor of the New York Stock Exchange on July 13, 2021. Brendan McDermid/Reuters
Reuters
Updated:

Goldman Sachs Group Inc. reported first-quarter profit that nearly halved on Thursday, as capital markets activity normalized from bumper levels a year ago, weighing on the bank’s investment banking business.

With the U.S. Federal Reserve beginning to wean the economy off pandemic-era support, dealmaking slowed in the quarter and cast a pall over some of Goldman’s most lucrative businesses.

Profit applicable to common shareholders fell to $3.83 billion, or $10.76 per share, in the quarter ended March 31, from $6.71 billion, or $18.60 per share, a year ago.

Analysts had expected a profit of $8.89 per share, according to Refinitiv data. It was not immediately clear if the estimates were comparable to the reported figures.

Total net revenue fell to $12.93 billion in the quarter, down nearly 27 percent from last year.

By Niket Nishant and Matt Scuffham