Goldman Sachs Reports EPS $8.79, Misses on Top Line, Selling Marcus Loan Portfolio

Goldman Sachs (NYSE:GS) is taking a beating in pre-market trading as earnings missed on the top line according to anaylist expectations.

Goldman reported Q1 2023 net revenue of $12.22 billion and net earnings of $3.23 billion. Earnings per share (EPS) came in at $8.79. The net revenue was 5% lower than in the first quarter of 2022 and 15% higher than in the fourth quarter of 2022.

Goldman noted that net revenues included a loss of approximately $470 million related to a partial sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to be held for sale. The Marcus loans are said to be largely offset by a related reserve reduction of approximately $440 million in provision for credit losses.

Goldman said that Global Banking & Markets generated quarterly net revenues of $8.44 billion, driven by Fixed Income, Currency and Commodities (FICC), and Equities, including record quarterly net revenues in Equities financing.

Asset & Wealth Management generated quarterly net revenues of $3.22 billion, including record Management and other fees.

Platform Solutions, its digital finance offerings, generated quarterly net revenues of $564 million, more than double the amount in the prior year period. This was 110% higher than the first quarter of 2022 and 10% higher than the fourth quarter of 2022. The increase compared with the first quarter of 2022 was due to higher net revenues in Consumer platforms – like its relationship with Apple. The increase in Consumer platforms’ net revenues primarily reflected significantly higher average credit card balances. Transaction banking and other net revenues were also higher, reflecting higher average deposit balances.

Assets under supervision increased $125 billion during the quarter to a record $2.67 trillion.

Shares of Goldman are down by over 3% in pre-market trading.

The earnings presentation is available here.

The earnings call will take place at 9:30 am ET today.


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