rewrite this title Goldman Sachs tops estimates on boom in equities trading revenue

Goldman Sachs on Monday posted first-quarter results that topped analysts’ expectations on stronger-than-expected equities trading revenue.

Here’s what the company reported:

Earnings: $14.12 a share vs. $12.35 LSEG estimateRevenue: $15.06 billion vs. expected $14.81 billion

The bank said profit rose 15% from the year-earlier period to $4.74 billion, or $14.12 per share, as revenue climbed a more modest 6% to $15.06 billion. It said that rising trading revenue in the quarter offset a slight decline in asset and wealth management revenue compared with a year earlier.

Goldman’s global banking and markets division saw a 10% rise in revenue to $10.71 billion as equity trading revenue rose 27% to $4.19 billion. That is about $540 million more from equities trading than what analysts surveyed by StreetAccount projected for the quarter.

The performance helped cover signs of weakness elsewhere. Goldman’s fixed income division saw revenue rise just 2% from a year earlier to $4.4 billion, missing the $4.56 billion estimate. Investment banking fees fell 8% to $1.91 billion, just below the $1.94 billion estimate, on lower advisory revenue.

Goldman CEO David Solomon hinted at the turmoil caused by President Donald Trump’s escalation of trade tensions this month in his remarks.

“While we are entering the second quarter with a markedly different operating environment than earlier this year, we remain confident in our ability to continue to support our clients,” Solomon said in the release.

Meanwhile, in the firm’s asset and wealth management division, revenue fell 3% from a year earlier to $3.68 billion, just under the $3.69 billion estimate. Goldman said the decline came from “significantly lower” revenue from its investments including private equity, public stock and debt.

Finally, the firm’s platform solutions division saw revenue slip 3% to $676 million, just under the $677.5 million estimate.

Shares of the bank rose 2.2% in morning trading.

Markets have whipsawed since Trump escalated trade tensions with U.S. trading partners this month, sowing uncertainty in the world’s largest economy. Goldman shares have dropped 14% this year through Friday.

Analysts were keen to hear what Solomon has to say about his conversations with corporate clients amid the tumult.

As his peers at JPMorgan and Morgan Stanley said Friday, the environment caused corporate clients to pause their deal plans, Solomon indicated.

“In investment banking, the volatile backdrop led to more muted activity relative to the levels we had expected coming into the year,” he told analysts Monday.

On Friday, rivals JPMorgan Chase and Morgan Stanley each topped expectations for first-quarter results on booming equities trading.

Equities trading revenue surged 48% and 45% at the banks, respectively, thanks to volatility in the opening months of Trump’s tenure amid his efforts to reshape global trade agreements.