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Profit crashed – it's still $ 2 billion "

In the trading of shares, the revenues of the US investment bank Goldman Sachs fell by 24 percent. And yet, the house writes billions of profits.

15:20, 15. April 2019

Net profit drops to a fifth in Goldman Sachs
Net profit drops to a fifth in Goldman Sachs © APA

The US investment bank Goldman Sachs experienced a weakness in trading in bonds and stocks and higher provisions for bad loans. Net profit in the first quarter fell by a fifth to $ 2.18 billion (1.93 billion euros)as the house of money announced on Monday.

Bankruptcy in the US and a trade dispute between the US and China, according to the Bank, are putting pressure on trade activities of buyers. Group revenues fell 13 percent to $ 8.8 billion. In trading in stocks, revenues fell by 24%, while trading in bonds, foreign currency and commodities fell by 11%.

Goldman expands online bank

"We are satisfied with our work in the first quarter," said the general manager David M. Solomon, In the core business, the investment bank gave solid results. Goldman has increasingly depended on market trends by JP Morgan, who has strong spending and recorded record results on Friday.

For several years, Goldman has been trying to expand his scope and expand his online Marcus bank, which offers relatively high interest rate savings for private users. However, provision for credit losses in the first quarter amounted to $ 224 million (2007: $ 44 million), primarily due to higher credit losses on consumer loans.

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