NEW YORK ( TheStreet) -- Goldman Sachs (GS - Get Report) beat analysts' earnings estimates on its top and bottom line even as sluggish trading activity dragged on profitability. The bank recorded an 11% drop in first-quarter profit, symptomatic of declines in both institutional client volume and fixed-income revenue.
Over the three months to March, net income tumbled to $1.95 billion, or $4.02 a share, from $2.19 billion, or $4.29 a share, in the year-earlier quarter. Revenue in its institutional client services segment fell 13% to $4.45 billion while fixed-income revenue dropped 11% to $2.85 billion.
The results were as-expected given constrained activity in the segment among other banks. In their respective first quarters, Citibank (C - Get Report) and JPMorgan (JPM - Get Report) each reported a decline in fixed-income revenue.
Segments which account for less revenue in the business reported gains. Investment banking, 19.1% of total revenue, climbed 13% year over year to $1.78 billion, while financial advisory services, 7.3% of gross, soared 41% to $682 million."Investment Banking and Investment Management generated solid results, while market sentiment shifted throughout the quarter, constraining client activity in various parts of our franchise," CEO Lloyd Blankfein said in a statement. Total net revenue slid 8% to $9.33 billion. Analysts surveyed by Thomson Reuters forecast net income of $3.45 a share on revenue of $8.7 billion. -- Written by Keris Alison Lahiff in New York.