Goldman Sachs profits decline but beat expectations

US bank Goldman Sachs has said its profits fell 23% in its last quarter, but still beat analyst expectations.

Net income fell to $2.1bn (£1.3bn) in the first three months of the year, from $2.7bn in the same period last year.

The firm said that staff compensation – salaries and bonuses – was $4.4bn, down 16% from last year.

Goldman said that “client activity remains relatively low”, especially in investment banking.

“We believe that our mix of businesses gives the firm significant room for revenue growth, as economic and market conditions continue to improve,” said Goldman chief executive Lloyd Blankfein.

Goldman’s net revenues in investment banking fell 9% in the quarter to $1.15bn.

The firm was recently fined $22m by US regulators to settle charges that some “top clients” may have been tipped off about stocks, saying the bank lacked policies to prevent leaks from their weekly “huddles” on equity research.

Goldman has been the subject of vocal criticism recently.

Greg Smith, who headed Goldman’s equity derivatives business in Europe, left the bank and wrote a scathing editorial for the New York Times, saying its environment was “toxic and destructive”.

But Mr Blankfein has rejected these claims and said the attacks did not reflect the banking giant’s values.