"The comparisons coming off last year are distorted, but if you look at comparisons against 2015, right? Citi, Bank of America and JP Morgan on average, 1Q FICC trading results were up about 5 percent versus 2015. Goldman was down 46 percent, so you know there is no sugar coating," Kotowski said.
Goldman Sachs posted first-quarter earnings of $5.15 per share and revenue of $8.026 billion. A consensus of analysts polled by Thomson Reuters expected earnings of $5.31 per share and revenue of $8.446 billion.
Nevertheless, Kotowski remains bullish on the company despite the earnings miss, noting that Goldman is more volatile on a quarterly basis than other big banks and expects trading to turn around.
"That is my basic reason for recommending the stock. I think rising rates means more volatility in fixed income markets, and that will ultimately then translate into