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Consumer, Wealth Management Net Revenue Rises At Goldman Sachs

Tom Burroughes

16 April 2020

wealth business. Net revenues in private banking and the lending business fell, however. 

Consumer banking net revenues - $282 million – rose by 39 per cent from a year ago, driven by higher net interest income, reflecting a rise in deposit balances and credit card loans.

Across the whole of Goldman Sachs, net revenues were $8.74 billion in Q1, unchanged from a year ago but fell by 12 per cent from the end of 2019. The firm said the quarter-on-quarter fall in revenue was mainly caused by a drop in asset management revenue.

Goldman Sachs said its operating environment was hit by the spread of COVID-19. The group hiked its provision for credit losses to $937 million from $224 million a year earlier. The rise in provisions was mainly because of expected loan impairments in the energy sector – hit by developments such as sliding oil prices – and the coronavirus pandemic. 

Within investment banking, net revenues rose by 25 per cent year-on-year to $2.18 billion.