The big US investment bank scored a 20% increase in profits to US$3.5 billion compared with the year-ago period, easily topping analyst expectations.

Revenues rose 15% to US$14.6 billion.

Goldman said increases in advisory fees reflected strength in the Americas and the Europe-Middle East-Africa (EMEA) regions.

Its investment banking fees backlog rose compared with the end of the first quarter (Q1), suggesting more mergers and acquisitions and initial public offerings lie ahead.

Bankers had been bullish on dealmaking after Donald Trump’s victory in the November 2024 presidential election.

However, in Q1, investment banks described dealmaking activity as having been backburnered as the White House focused on fast-changing trade policy.

Executives at rival financial services companies expressed hopes yesterday for more deals, with clients opting to charge ahead in spite of tariff uncertainty.

In its markets division, Goldman’s gains were particularly pronounced in equities, where it enjoyed significantly higher revenues in equities financing and equities “intermediation,” where Goldman acts as a middleman between two parties in a transaction.

These increases helped to offset lower revenues in Goldman’s asset and wealth management business.

Chief Executive David Solomon expressed measured optimism on the economy.

“At this time, the economy and markets are generally responding positively to the evolving policy environment,” he said in Goldman’s press release.

“But as developments rarely unfold in a straight line, we remain very focused on risk management,” he added.

Shares of Goldman Sachs rose 1.2% in pre-market trading.