Goldman Sachs has no quick plans to increase its cryptocurrency choices past the institutional facet of the enterprise, mentioned CEO David Solomon through the financial institution’s first quarter earnings on Wednesday.
Whereas Goldman Sachs revealed its interest in offering Bitcoin to wealth management clients earlier this month, putting pressure on other Wall Street banks to follow suit, the funding financial institution stays targeted on offering a extra “primary set” of economic companies whereas it builds out Marcus, its shopper banking digital platform, Solomon mentioned through the earnings name.
“Clearly, we’re monitoring this all in a short time, we’ve got a plan in the meanwhile to construct a digital financial institution that’s providing an array of built-in primary companies in a totally digital, frictionless platform,” Solomon mentioned. “We’re extraordinarily targeted on that, in the meanwhile, we’re not targeted on providing a crypto pockets.”
Whereas the funding financial institution remains to be figuring out the small print of a future crypto providing, its income skyrocketed reaching $6.84 billion within the first quarter. The agency’s quarterly income of $17.7 billion represents an enormous leap in development in contrast with the prior-year interval when the financial institution posted income of $1.2 billion on income of $8.7 billion.
An inflow of income from underwriting new preliminary public choices, special-purpose acquisition firms, and different gross sales of inventory greater than quadrupled to $1.6 billion.
“The rise in underwriting web revenues was resulting from considerably increased web revenues in each fairness underwriting, primarily pushed by robust preliminary public choices exercise,” the financial institution mentioned in its launch. “The rise in monetary advisory web revenues mirrored a major enhance in accomplished mergers and acquisitions transactions.”
Monetary advisory revenues totaled $1.12 billion, rising 43% in comparison with the identical interval final 12 months. Client and wealth administration produced $1.7 billion of revenues within the first quarter, up 16% versus a 12 months in the past.
Administration and different charges of $1.1 billion was 12% versus the primary quarter of final 12 months, reflecting increased property beneath supervision, which rose 25% to $637 billion.