Goldman Sachs’ dealmaking slump intensifies as revenue plunge 74% in Q1

Goldman Sachs’s revenue from dealmaking plummeted 74% in the first quarter, intensifying the investment bank’s post-pandemic deal drought and adding to concerns over a wider slowdown in mergers and acquisitions..

The Wall Street giant’s investment banking revenue plunged to $1.57bn in the three months to the end of March, down from $5.93bn a year earlier, as Russia’s invasion of Ukraine and a sharp downturn in the global stock market hammered activity..

Goldman’s dealmaking slump will add to concerns that the bumper bumper year for mergers and acquisitions during and immediately after the pandemic is coming to an end as the global economy slows, interest rates rise and war rages in Ukraine..

The investment bank’s overall revenue fell 27% to $12.9bn, which was still higher than analyst expectations of $11.1bn, in part because of a sharp rise in revenue from its trading desks..

Goldman’s fixed income trading revenue rose 40% to $4.28bn, while its equities trading revenue climbed 27% to $2.87bn. Commodities trading revenue rose 6% to $1.1bn..

The bank’s net income fell 43% to $3.65bn, well ahead of analyst expectations of $2.85bn, as expenses fell..

Goldman’s chief executive, David Solomon, said: .

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