Goldman Sachs, the world’s second-largest investment bank, has reported an 18% profit loss in its first-quarter earnings report. This caused the bank’s stock to slide 3.7% in premarket trading compared to Monday’s close price of $339.68 per share.
Goldman Sachs’ saw its quarterly profit drop to $3.23 billion compared to the $3.83 billion it had during the same period last year. The earnings of $8.79 per share exceeded the $8.10 estimate from Wall Street analysts, but the revenue of $12.22 billion fell short of the expected $12.79 billion.
The bank’s disappointing performances in the first quarter were a result of quite deal making as well as several other factors. This includes the decision to offload a significant chunk of its Marcus loans portfolio that came with a $470 million loss.
Addressing the underwhelming results, Goldman Sachs’ David Solomon said that they should be viewed in light of the recent crisis in the banking industry.
“The events of the first quarter acted as another real-life stress test, demonstrating the resilience of Goldman Sachs and the nation’s largest financial institutions,” Solomon shared.
Goldman Sachs’ stock traded at $327.11 per share on Tuesday morning. The company’s shares are currently 5.5% down year-to-date.