Goldman Sachs Q1 profits plummet as credit provisions soar

Goldman Sachs posted a large drop in earnings as the lender was forced to more than triple its provisions for credit losses.

Net profits for the three months ending on 31 March dropped from $1.917bn in the year earlier period to reach $1.213bn, with earnings per share down by roughly 46% to $3.11.

Going the other way, provisions soared from $224m to $937m with Goldman linking the increase to pressure on corporate loans to the energy sector, as well as the broader fallout from the Covid-19 pandemic.

Net revenues however only dipped by 0.7% to $8.74bn thanks to strong contributions save only its asset management arm, which saw its revenues wiped out during the quarter.

By geographical areas, the firm's net revenues rose strongly in Asia, but that failed to offset declines in Europe, the Middle East and Africa, and in the Americas.

As of 1507 GMT, shares of Goldman Sachs were trading 2.37% lower at $174.15.