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Goldman’s profits hit by loan provisions, despite trading and banking gains

Goldman’s prized fixed income division, which was maintained as other banks made deep cuts in the wake of the financial crisis, posted its best quarterly performance for five years

David Solomon, chief executive officer of Goldman Sachs
David Solomon, chief executive officer of Goldman Sachs Photo: Getty Images

Goldman Sachs posted a big uptick in its core businesses of trading and investment banking, but profits at the bank still slid by nearly 50% as it increased reserves against credit losses related to the Covid-19 downturn.

The US banking giant is the first Wall Street firm without a significant consumer and commercial banking business to report its first quarter earnings, but money put aside for potential credit losses still ate into profits, with revenues remaining stable.

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