Goldman Sachs, Bank of America Report Q1 Earnings

Lloyd Blankfein chairman and chief executive officer of Goldman Sachs Group

Goldman Sachs has ended Wall Street's run of soaring fixed income revenues this earnings season - and has added that, despite an upbeat start to the year for investment bankers, its backlog of transactions has seen better days. JPMorgan Chase, Citigroup and Bank of America's trading divisions all reported increases in trading last quarter.

Shares of Goldman Sachs sank 3 percent in pre-market trading to $219.99. That result beat the average estimate of $5.09 a share in a FactSet survey. Trading revenues in bonds, currencies and commodities was effectively flat in quarter while trading revenues for stocks were down 6 percent from a year earlier. That compares with $1.14 billion, or $2.68 a share, a year ago, when Goldman posted its worst first quarter in 12 years as trading sputtered and interest rates remained painfully low.

Investment banking revenue, which includes M&A, debt underwriting and stock underwriting, rose 16.4 percent to $1.7 billion.

Morgan Stanley MS.N , Goldman's traditional rival, reports earnings on Wednesday.

In a statement, Goldman Sachs Chairman and CEO Lloyd Blankfein called the quarter "mixed" and that client activity was "challenged". In last year's first quarter, the firm reported $2.68 per share in earnings and $6.34 billion in revenue. Those banks' revenues from fixed income trading rose year-on-year by 17%, 19% and 29%, respectively. Global Wealth and Investment Management revenue rose 3% to $4.6 billion as loans and leases grew 7% to $9.3 billion and total client balances rose 5% to nearly $2.6 trillion on the back of higher market valuations.

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