In Goldman’s quarterly earnings release, it reported a 17 percent reduction in investment banking net revenue, as equity underwriting and merger advisory activity slowed.
But more people bought homes or refinanced existing mortgages as they sought to capitalize on historically low interest rates, which helped boost the company’s revenue. That activity led to a 37 percent increase in revenue from trading securities related to mortgages and commodities, the bank said.
Moving forward, Hintz forecast that Goldman would generate a “fine” return on equity, but that its revenue growth rate would be slower due to a decrease in the strength of the trading business.
—By CNBC.com’s Katie Little. AP contributed to this report.
Additional News: Goldman Earnings Beat Estimates
Additional Views: ‘Relatively Good Earnings’ Ahead for Banks: Pro
CNBC Data Pages:
Brad Hintz does not own shares in Goldman Sachs.
Follow Katie Little on Twitter @katie_little_.