Goldman profit up 27 percent as trading surges

(Reuters) - Goldman Sachs Group Inc <GS.N> reported a 27 percent rise in quarterly profit on Tuesday, driven by a surge in trading revenue due to increased market volatility.

The bank said net income applicable to common shareholders rose to $2.74 billion, or $6.95 per share, for the three months ended March 31 from $2.16 billion, or $5.15 per share, a year earlier.

Analysts on average had expected earnings of $5.58 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported figures were comparable.

Like other banks, Goldman's trading desk benefited from increased volatility because of concerns around rising inflation and a potential trade war.

Goldman's trading revenue rose 30.5 percent to $4.39 billion from the year-earlier quarter, when revenue fell 2 percent because of the bank's large exposure to commodities.

Goldman's 23 percent increase in fixed income trading revenue was in sharp contrast to that of larger rivals. JPMorgan Chase & Co's <JPM.N> fixed income revenue was flat, while at Citigroup's <C.N> it fell 7 percent.

Total revenue, including net interest income, rose 25 percent to $10.04 billion.

Goldman's arch rival, Morgan Stanley <MS.N>, is scheduled to report quarterly results on Wednesday.

(Reporting By Aparajita Saxena and Sweta Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)

04/17/2018 7:52

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