Goldman Sachs earnings dip on trading declines

Goldman Sachs reported lower quarterly profits Thursday due to declines in some key trading divisions, but notched a big gain in financial advisory services. Earnings for the first quarter came in at $2.03 billion, down 10 percent from $2.26 billion a year ago. The US investment bank cited an 11 percent drop in revenues from fixed income, currency and commodity trading, a weak area this quarter for many Wall Street firms due to weak client demand. Revenues in equity trading were down 17 percent from the year-ago level. "We are generally pleased with our performance for the quarter given the operating environment," said chief executive Lloyd Blankfein. "Investment Banking and Investment Management generated solid results, while market sentiment shifted throughout the quarter, constraining client activity in various parts of our franchise." Bright spots included a 41 percent rise in financial advisory revenues due primarily to an increase in client activity in Europe. The company also notched higher revenues in equity underwriting, thanks in part to the hot market for initial public offerings. The results translated into earnings per share of $4.02, well above analyst estimates for $3.44. Revenues declined 7.6 percent to $9.33 billion, above the $8.70 billion forecast by Wall Street analysts. Shares rose 2.0 percent to $160.28 in pre-market trade.