Goldman cautious as earnings inch higher

New York - Goldman Sachs on Tuesday reported slightly higher earnings for the first quarter but became the latest banking giant to give a cautious appraisal of the global economy.

Goldman reported net income of $2.2bn on $10.1bn in revenues, up from the prior-year level of $2.1bn in profits on $9.9bn in revenues.

Goldman reported 35% higher revenues in investment banking compared with last year, as an increase in merger and acquisition activity fueled growth. The firm's investment management division also posted revenue gains.

But the banking giant said revenues in fixed income, currency and commodities client execution were seven percent below the year-ago levels. Goldman also said net revenues in equities were 15% below the year-ago levels.

Goldman chief executive Lloyd Blankfein lauded the "generally solid results," but included a cautious note in his appraisal. Executives from JPMorgan Chase and Citigroup have offered similarly cautious outlooks in recent days.

"The potential for macro-economic instability was felt in the quarter and constrained overall corporate and investor activity," Blankfein said. "We continue to be very focused on controlling our costs and efficiently managing our capital."