Goldman Sachs Group Inc. (GS - Get Report) , the Wall Street firm, said first-quarter profit surged 26% as price swings returned to global markets following an unusually calm 2017, reviving client activity and boosting stock-trading revenue.
Net income rose to $2.83 billion from $2.25 billion a year earlier, according to a statement Tuesday from the New York-based bank. Earnings per share climbed to $6.95, beating the $5.58 average estimate of analysts in a survey by database provider FactSet.
Stock-trading revenue increased by 38% from a year earlier to $2.31 billion, Goldman said. Revenue in the fixed income, currency and commodities division was $2.07 billion, up 23%.
"Solid performance across our businesses produced strong returns," CEO Lloyd Blankfein said in the statement.
Wall Street firms including Goldman rivals JPMorgan Chase & Co. (JPM - Get Report) have reported higher profit due to a resurgence in stock-market volatility as traders speculate over the pace of Federal Reserve interest-rate increases, U.S. trade tensions with China and the data-privacy scandal at Facebook Inc. (FB - Get Report) .
The CBOE Volatility Index, a key gauge of market volatility known as the "VIX," was 43% higher on average during the quarter.
San Francisco-based Wells Fargo & Co. (WFC - Get Report) , struggling to recover from a series of regulatory penalties over allegedly aggressive sales practices, posted a 5.5% profit increase on a preliminary basis, noting that legal costs might have to be revised higher pending discussions with regulators over as much as $1 billion of new penalties related to auto insurance and mortgage-related violations.