Report: Trump’s tax cuts give big banks huge profits


Goldman Sachs Group Inc. has reported significantly higher profit and revenue from a year ago, mirroring some of its rivals which also reaped benefits from the recent tax overhaul and newly active markets.

Goldman Sachs’ first-quarter revenue increased 25 percent from a year ago to $10.04 billion. Profits were up 26 percent at $2.83 billion, or $6.95 per share, figures that exceeded the expectations of analysts, The Wall Street Journal reported.

Each of the four business lines at Goldman Sachs reported higher revenue, with its return on equity — a measure of profitability — measuring 15.4 percent for the quarter, its highest in six years.

Goldman Sachs improved in areas that Chief Executive Lloyd Blankfein identified as growth priorities, with debt underwriting revenues rising 25 percent, and asset management revenues reaching a record $1.77 billion.

A decade after its conversion to a Main Street bank, Goldman Sachs also hit a record high in net interest income, reaching $918 million. The firm is aiming to add $5 billion in annual revenue by 2020, and anticipates lending — including that from its new consumer bank, Marcus — to account for nearly half of the new revenue.

Goldman Sachs shares are up 1.2 percent in 2018 through Monday. According to the Journal, “business roared back in the first quarter as volatility returned to the markets. The dollar fell, interest rates rose, and stocks swung around amid fears of a trade war and as the tumult at Facebook Inc. weighed on shares of technology companies.”

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