US banking giant Goldman Sachs has posted a drop in first quarter profits and revenues as tough market conditions hit the firm’s two main divisions.
Net income dropped 21% across the group compared to the same period last year to $2.25bn (£1.7bn), although this was ahead of analyst expectations.
Earnings per share also finished ahead of forecasts, at $5.71 against the expected $4.89, after cuts to operating expenses and compensation.
Staff were hit in the pocket by the drop as Goldman Sachs reduced pay by 20%.
The Wall Street bank saw net revenues slide 13% to $8.8bn (£6.7bn) in the quarter to the end of March, as it suffered declines across most of its key divisions.
The firm’s largest area, institutional client services, posted revenues of $3.6bn (£2.7bn), an 18% decline on the previous year.
Equities trading revenues fell 24% year-on-year to $1.77bn (£1.35bn). Investing and lending revenues declined 11% to $1.84bn (£1.4bn), driven by “significantly lower net gains” from stakes in private equities and debt holdings.
Chief executive David Solomon said: “We are pleased with our performance in the first quarter, especially in the context of a muted start to the year.”