By Utkarsh Shetti and Saeed Azhar
April 13 (Reuters) - Goldman Sachs posted a rise in first-quarter profit on Monday, as the Wall Street bank benefited from strength in dealmaking and equities trading.
Global markets have been roiled by the Iran war as rising crude oil prices fan inflation fears and exacerbate worries about a recession.
The heightened volatility across asset classes has pushed up the need for clients to reassess portfolios and hedge downside risks, a practice that typically buoys trading
desks at large banks.
"The geopolitical landscape remains very complex – so disciplined risk management must remain core to how we operate," Goldman Sachs CEO David Solomon said in a statement.
Goldman's revenue from equity trading intermediation and financing rose 27% to a record $5.33 billion, while that from fixed income, currencies and commodities fell 10% to $4.01 billion.
Profit applicable to common shareholders jumped to $5.4 billion, or $17.55 per share, compared with $4.58 billion, or $14.12 per share, a year earlier.
M&A MARKET RESILIENT
Wall Street executives expect a strong year for mergers and acquisitions despite the current uncertainty from the Middle East conflict, as a softer stance on regulations under President Donald Trump's administration and the artificial intelligence boom are likely to underpin much of the activity.
Global M&A volumes hit $1.38 trillion in the first quarter, according to data compiled by Dealogic. Analysts at Jefferies noted that global M&A proxy fees rose 19% year-over-year to $11.3 billion, with Goldman leading the pack in market share.
The investment bank worked on some large deals in the first quarter, including advising Unilever on the planned merger nL6N40J0DU of its food business with McCormick to create a $65 billion company, and Equitable's proposed tie-up nL4N40E0MZ with Corebridge to form a $22 billion insurer.
Its fees from investment banking rose to $2.84 billion in the first quarter, a 48% jump from a year ago.
Shares of the Wall Street giant have risen over 3% so far this year, after a more than 53% jump in 2025.
BIG IPOs AWAITED
The IPO market has been hit by renewed uncertainty fueled by geopolitical tensions that have hurt risk appetite in equities, but some companies, especially those in industrials and defense, have pressed ahead with their listing plans.
Goldman has secured a spot nL6N40J1K7 as one of the lead banks managing SpaceX's blockbuster IPO expected in June, according to a Reuters report. The Elon Musk-led firm could raise $75 billion at a valuation of $1.75 trillion.
The listing is expected to set the stage for a flurry of bumper offerings this year, including the potential IPOs of OpenAI and Anthropic.
Goldman was among the joint book-running managers nL1N400018 in PayPay's $880 million U.S. IPO, which valued the SoftBank-backed firm at $10.7 billion.
ASSET MANAGEMENT BUSINESS STURDY
Goldman's revenue from assets and wealth management rose 10% to $4.08 billion. The bank has prioritized the business to generate steadier income, reducing its reliance on more volatile trading and investment banking revenues.
The firm's private credit fund, housed under the division, defied an industry-wide spike in redemptions nL4N40P0HZ last week, where investors sought to repurchase just under 5% of shares in the first quarter - redemptions that did not breach its cap.
Fears that artificial intelligence could erode software companies' earnings and weaken their ability to service debt have rattled the multi-trillion-dollar private credit industry, prompting investors to seek liquidity with a rush of withdrawals.
Goldman completed its acquisition nL4N40L0XG of active exchange-traded fund provider Innovator Capital Management earlier this month, lifting its total ETF assets under supervision to $90 billion.
(Reporting by Utkarsh Shetti in Bengaluru and Saeed Azhar in New York; Editing by Anil D'Silva)
