David Solomon, chairman and CEO of Goldman Sachs, speaks on CNBC’s Squawk Box at the annual meeting of the World Economic Forum in Davos, Switzerland, January 17, 2024.
Adam Galich | CNBC
Goldman Sachs plans to release first-quarter earnings before the opening bell on Monday.
Here’s what Wall Street expects:
- Earnings: $8.56 per share, according to LSEG.
- Revenue: $12.92 billion, according to LSEG.
- Trading revenue: Fixed income of US$3.64 billion and equities of US$2.95 billion per StreetAccount.
- Investment banking revenue: $1.77 billion per StreetAccount.
Goldman Sachs CEO David Solomon has struggled in the past year, but hopes for improvement are growing.
Dormant capital markets and missteps related to Solomon’s ill-fated push into retail banking should give way to stronger results this year.
Rivals JP Morgan Chase And Citigroup posted better-than-expected trading results and investment banking fee recovery in the first quarter; investors will be disappointed if Goldman doesn’t show similar returns.
Unlike its more diversified competitors, Goldman generates most of its revenue from Wall Street operations. This can lead to excessive profits during boom times and poor performance when markets do not interact with each other.
After exiting retail banking, Goldman’s new focus for growth was on its wealth and wealth management division. The business could benefit from buoyant markets earlier in the year, although it has also had to write down amounts associated with commercial real estate in the past.
Solomon is also available to answer questions about recent examples of executive attrition, including its global treasurer Philip Berlinski and Beth Hammack, co-head of the bank’s global financial services group.
On Friday, JPMorgan, Citigroup and Wells Fargo Co. each posted quarterly results that beat estimates.
This story is evolving. Please stay tuned for updates.