Goldman seeks to diversify business mix after muted Q1

|About: The Goldman Sachs Group, Inc. (GS)|By:, SA News Editor

Goldman Sachs's (NYSE:GS) Q1 reflects a muted start to the year with net earnings of $2.25B, or $5.71 per share falling from $2.83B, or $6.95 per share, a year ago.

Beats average analyst estimate of $5.02.

"We are focused on new opportunities to grow and diversify our business mix and serve a broader range of clients globally," says Chairman and CEO David Solomon.

Boosts quarterly dividend to 85 cent per share from 80 cents.

Q1 revenue of $8.81B, missing consensus of $8.89B, increased from $8.08B in Q4 2018, and fell from $10.1B a year ago. By segment:

    Investment Banking revenue of $1.81B, fell 11% Y/Y and was essentially flat from Q4 2018.

    Institutional Client Services revenue of $3.61B rose 49% from Q4, fell 18% from the year-ago quarter; FICC revenue of $1.84B jumped 124%  from Q4, but fell 11% from Q1 2018; equities revenue of $1.77B, up 10% Q/Q, down 24% Y/Y.

    Investing & Lending revenue of $1.84B fell 4% Q/Q and fell 14% Y/Y.

    Investment Management of $1.56B fell 9% Q/Q and fell 12% Y/Y.

Q1 net interest income of $1.22B rose from $991M in Q1 and $918M in Q1 2018.

Q1 provision for credit losses of $224M increased from $222M in Q4 2018 and $44M in Q1 2018.

Common equity tier 1 ratio of 13.7%% at March 31, 2018 vs. 13.3% at Dec. 31, 2018.

Tangible book value per share of $198.25 at March 31, 2018 vs. $196.64 at Dec. 21, 2018.

Goldman shares slip 0.1% in premarket trading.

Conference call at 9:00 AM ET.

Previously: Goldman Sachs beats by $0.69, misses on revenue (April 15)

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