Prior to the trading on April 17, Goldman Sachs Group Group released its financial results for the first quarter of 2018, which showedGoldman Sachs Group earned $6.95 per share in the first quarter, $1.37 higher than the market forecast of $5.58. This is a significant increase from $5.15 in the same period last year and $5.51 in the previous quarter. In addition, first-quarter operating income was $10.04 billion, net profit was $2.83 billion, and annualized ROE (return on equity) reached 15.4%.
Photo Source: Goldman Sachs Group Group official website
Core focus
Goldman Sachs Group's revenue of $10.04 billion in the first quarter topped all quarters in the past three years, up 25 per cent from the same period last year.
ROE (return on equity), which represents profitability, ranked first in the past six years at 15.4%. Earnings per share of $6.95 are also among the top three in historical data.
In the first quarter, the operating income of the investment banking underwriting business ranked second in historical data, growing to 27%, providing the company with 12% of revenue contribution. Overall, investment banking revenue also reached $1.79 billion, higher than the market estimate of $1.71 billion.
The two main divisions of the institutional investment business, FICC (fixed income, currency and Commodities Trading) and Marketing, reached their highest level in three years, beating market expectations as a whole.
Photo source: Futu Niuniu
It is not difficult to see that Goldman Sachs Group significantly improved the confidence of shareholders and investors in the first quarter of 2018 after a short decline in operations and earnings in the fourth quarter of 2017. The improvement in market-making conditions and the increase in customer activities have greatly boosted the company's performance, while by increasing operating costs to strengthen the customer base, the actual situation of expanding business diversity has not only seen gains in revenue and profit growth, but also won the basic recognition of the market. However, it should still be noted that the macro economic situation and the fierce competition in the industry will still be Goldman Sachs Group's curse for a period of time, and any changes in the company's internal development strategy or business thinking will be sensitively reflected in the real-time stock price.
As of 08:07 eastern time on the 17th, Goldman Sachs shares rose 0.77% to close at $257.88 before trading. More companies in the market and strategy can follow the conference call at 21:30 on the evening of the 17th.
(editor / Chen Lixing)