Goldman Sachs stumbled while Bank of America surged in first quarter

Profits and revenue rose at Bank of America (BAC) during the first quarter while falling at Goldman Sachs (GS), offering a diverging look at how two financial giants fared during a challenging period for the banking industry and the markets.

Goldman’s profit was roughly $3.1 billion in the quarter ending March 31, down from $3.83 billion a year ago as several of its mainstay businesses sputtered. Investment banking revenue was down 26%, as new deals slowed, and advisory fees were down 27%. Revenues from fixed-income trading, another traditional Goldman strength, also fell.

Goldman’s stock was down more than 3% in pre-market trading.

Bank of America, which has a much bigger consumer lending business than Goldman, reported earnings of $8.2 billion that were up 15% from the first quarter of 2022. Its stock was up 2.6% in pre-market trading.

One key driver of earnings was its net interest income, which is the difference between what a bank earns on its loans and pays out on its…

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