Profits at Goldman Sachs tumbled at the start of the year as a slump in dealmaking hit the Wall Street giant.
In the three months to the end of March, the investment bank said profits fell 18 per cent to £2.6billion, with volatility on financial markets and fears about the global economy set to continue to take their toll.
Data from S&P Global Market Intelligence highlighted the extent of the issue in the US and Canada, as the total number of mergers and acquisitions plunged 21 per cent to 20,965 in 2022.
While Goldman was battling volatile markets, Bank of America (BoA) benefited from its greater exposure to consumers.
Deal slump: Goldman said profits fell 18% to £2.6bn, with volatility on financial markets and fears about the global economy set to continue to take their toll
First quarter profits climbed 15 per cent to £6.5billion when compared to the same period last year.
Results showed that the second largest US bank by market value behind JP Morgan was boosted by a 25 per cent uptick in net interest income £11.5billion.
This is the difference between what a bank charges borrowers for loans and pays to savers on deposits.
Despite the contrasting results, an area of concern for both will be deposits.
Analysts had expected depositors to shift money out of smaller lenders into larger ones following the collapse of Silicon Valley Bank and Credit Suisse last month, although that hasn’t been the case across the board.
Goldman’s customers pulled £9.6billion worth of deposits in the quarter. Deposits at BoA also slipped by £16billion from the end of 2022 to £1.5 trillion.
JP Morgan last week reported a 2 per cent uplift in deposits to £1.8 trillion.
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