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…
This article was written by and originally published on finance.yahoo.com