The investment banker recorded a profit of $1.14bn in the March compared to $2.75bn in the corresponding quarter a year earlier. Its net revenue plunged by 40% to $6.3bn in the quarter compared to $10.6bn a year ago.
Goldman Sachs chairman and CEO Lloyd Blankfein said: "The operating environment this quarter presented a broad range of challenges, resulting in headwinds across virtually every one of our businesses.
"Looking ahead, we will continue to focus on delivering superior service to our clients and managing our business efficiently, which remain essential to generating shareholder value over the long term."
Its revenue from investment banking services declined by 23% to $1.46bn due to a fall in mergers and acquisitions (M&A) activity.
Revenue from financial advisory services fell 20% to $771m in the quarter, as there was a decrease in the number of completed M&A transactions.
Goldman Sachs’ trading revenue from bonds, currencies and commodities sank 47% to $1.66bn in the quarter, as lower crude oil prices and uncertainties over global growth weighed heavily on the trading activity.
The company posted a 23% drop in its revenue from equities trading to $1.78bn in the first quarter, as trading activity was hit by weak sentiment.
"During the first quarter of 2016, fixed income, currency and commodities client execution operated in a challenging environment characterized by economic uncertainty and difficult market-making conditions, which resulted in significantly lower net revenues across all major businesses compared with the first quarter of 2015," Goldman Sachs said in a statement.
Revenue from underwriting services was down 27% to $692m, as there a drop in the number of clients’ equity deals. It’s investing and lending unit witnessed a fall in its revenue to $87m from $1.67bn a year ago.
Goldman Sachs’ investment management unit generated revenue of $1.35bn for the first quarter, down by 15% compared to same period in 2015.
Image:Goldman Sachs Headquarters, New York City. Photo courtesy of Quantumquark/Wikipedia
