Investment banking leader
During the first quarter, Goldman Sachs (GS) ranked first worldwide in the announcement and completion of mergers and acquisitions. Goldman Sachs also ranked first in equity and equity-related offerings.
Net revenues for the Investment Banking division totaled $1.91 billion. This was a 7% increase compared to the prior-year quarter.
Financial advisory and equity underwriting witnessed the highest revenue growth of 41% and 22%, respectively. The increase was mainly due to the strong fundraising and acquisitions activity in domestic markets.
Underwriting revenues decreased by 14% to $944 million. This was mainly because a decline in leverage finance activity had led to lower debt underwriting revenues.
The company’s investment banking transaction backlog was significantly higher when compared to the first quarter of the previous year.
Investment banking activities
Goldman Sachs provides a range of financial services:
- strategic advice
- corporate defense activities
- assignments related to mergers and acquisitions, restructurings, and spin-offs
- risk management
- derivative transactions related to client advisory assignments
- underwriting for public offerings and
- underwriting for private placements, loans, and other financial instruments
- local and cross-border transactions for various securities and derivative transactions
The company also competes for mandates in underwriting, advisory services, mergers, and acquisitions with JPMorgan Chase (JPM), Morgan Stanley (MS), Citigroup (C), Credit Suisse (CS), Evercore Partners (EVR), Deutsche Bank (DB), and Greenhill (GHL). Together, these companies form 16.28% of the Financial Select Sector SPDR (XLF).