Goldman Sachs took advantage of the agitation of the markets in the first quarter to improve their income and benefits, with the Variable Income Table as the business of the business, according to the results communicated this Monday to the United States Securities and Stock Exchange Commission (the SEC). The Investment Bank achieved a consolidated net attributable benefit of 4,583 million dollars between January and March, 17% more than in the same period of the previous year, in a quarter marked by the return of Donald Trump to power with its erratic economic and commercial policy, which has deteriorated the economic perspectives and has accentuated the uncertainty.
“Our solid results of this quarter have shown that, in times of great uncertainty, customers resort to Goldman Sachs in search of execution and insight. Although we enter the second quarter with an operational environment markedly different from that of the beginning of the year, we continue to trust our ability to continue supporting our clients,” David Solomon, president and CEO of Goldman Sach.
The entity improved both the margin of interest (thanks to minor interest paid) and the exploitation. Total revenues grew 6%, up to 15,062 million dollars. The large engine of income and profitability was the Variable rental business. Intermediation revenues were fired by 28%, up to 2,547 million euros, while those of financing of that division grew 24%, to 1,645 million. In total, the Bolsa table entered a record of 4,189 million dollars, 27% more than a year ago.
The paralysis of mergers and acquisitions caused a fall in the entity’s investment bank commissions. The decrease concentrated on the advice commissions, which fell 22%, up to 792 million dollars. Those of placement and assurance of variable rental emissions remained stable at 370 million, while those of fixed income grew 8%, to 752 million. Together, the decrease was 8%, up to 1,914 million dollars.
Volatility, therefore, has a double face for Goldman Sacha. On the one hand, its variable income table is obtaining intermediation commissions and record financing income by serving customers. On the other, instability and uncertainty paralyze the merger and acquisition market, in which Goldman Sachs is a leader, penalizing the advisory commissions of his investment banking division.
