- Goldman Sachs (GS) reported year-over-year declines in revenue and earnings per share.
- Losses in the consumer loan division and lower demand for investment banking dragged down the results.
- Management said that Goldman will scale back its consumer banking services.
Goldman Sachs (GS) shares slipped close to 2% after reporting declining earnings stemming from losses in its consumer loans division as well as lower demand for investment banking.
Goldman Sachs' revenue fell to $12.22 billion, down from $12.93 billion a year ago and lower than the projections of $12.8 billion. Goldman Sachs earnings dropped to $8.79 per share, down from $10.76 a share a year ago, but ahead of estimates of $8.34 per share that analysts forecasted for the first quarter.
Management of the New York-based bank has said that it will scale back on consumer banking services like loans, checking accounts and credit cards. Goldman said that it sold a portion of its Marcus consumer loans portfolio, taking a revenue hit of $470 million. It's also seeking to sell GreenSky, another lender it purchased nearly a year ago.
With deals drying up, revenue from investment banking was down 26%, showing a steep drop in one of Goldman's primary businesses. Advisory fees were down 27%, while revenue from fixed-income trading was also lower. Goldman Sachs did improve revenue in its assets and wealth management business.
Shares of Goldman Sachs are up 3.9% over the past 12 months and down 2.7% so far this year.