The financial giant saw net income plunge to US$2.1 billion, down 20.3% from the same period of last year.

At the same time revenues fell 12.7% to US$8.8 billion.

Goldman encountered sharp declines in key trading divisions, such as equities and bonds.

Market conditions improved from the prior quarter, but volatility was low, crimping activity, the investment bank said.

A bright spot was financial advising for mergers and acquisitions where it scored a boost in revenues, while underwriting revenues fell.

Goldman, which has ramped up its consumer lending business through its online savings accounts, credit cards and other ventures, set aside US$224 million for credit losses.

“We are pleased with our performance in the first quarter, especially in the context of a muted start to the year,” said Chief Executive David Solomon.

“We are focused on new opportunities to grow and diversify our business mix and serve a broader range of clients globally.”

Goldman’s share prices rose 0.2% to US$208.22 in pre-market trading.