Goldman Sachs Group reports its best Quarterly Profit in Five Years

Goldman Sachs Group has reported surge in its quarterly earnings for the first quarter. According to the investment banking and financial services major, it has registered the best quarterly profit in five years. The company gained from trading bonds and currencies as global market rose and fell in the first quarter of 2013.

According to reports, trading volume improved after the Swiss central bank scrapped a cap on the franc, the United States Federal Reserve moved to tighten monetary policy and the European Central Bank announced about its quantitative easing program.

Total trading revenue of the company headquartered in Manhattan, New York, rose more than 20% to $5.46 billion in the first quarter of 2013. In the afternoon trading, shares of Goldman were down about 0.3% at $200.5. On Wednesday, the company’s shares hit their highest since May 2008.

Investors usually discount trading and investment results as the results are so volatile, said Michael Wong, an analyst with Morningstar. According to Wong, “Retaining potentially excess capital, when it doesn’t seem to be for opportunistic purposes, makes someone wonder how much excess capital Goldman truly has or whether it's retaining capital for potential negative contingency”.

Fixed-income, currencies and commodities (FICC) of the company rose about 10% to $3.13 billion in the first quarter. In the fourth quarter last year, the revenue fell 29%.