Goldman Sachs reported an 11 percent drop in quarterly profit as client activity remained constrained and fixed-income revenue shrank, but both earnings and revenue beat market estimates and the Wall Street bank’s shares rose.
Goldman said net income fell to $1.95 billion, or $4.02 per share, in the first three months of the year from $2.19 billion, or $4.29 per share, in the same period of 2013. Analysts on average had expected earnings of $3.45 per share.
Total net revenue fell 8 percent to $9.33 billion, but beat the average estimate of $8.70 billion.
Goldman’s shares, which had fallen more than 20 percent since the start of the year to Wednesday’s close, were up 1.9 percent at $160.28 before the opening bell.
“Investment Banking and Investment Management generated solid results, while market sentiment shifted throughout the quarter, constraining client activity in various parts of our franchise,” Chairman and CEO Lloyd Blankfein said in a statement.