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.

The bank's trading division had net revenue of $3.36 billion in the first quarter, down 2 percent from a year earlier and down 7 percent from the fourth quarter.

Net income nearly doubled to $2.26 billion, or $5.15 a share, from $1.14 billion, or $2.68, a year earlier, the company said in the statement.

Last week JP Morgan and Citigroup said that revenue from fixed income trading climbed by 17 per... 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.

In a statement, Goldman Chief Executive Lloyd Blankfein described the business environment as "mixed" with client activity "challenged". While Goldman shares soared on investors' hopes that Trump would slash costly financial regulations and spur economic growth that would lift interest rates, the bank's first-quarter earnings illustrated that the President's promises have not yet been a silver bullet for Wall Street. Investment banking net revenue was $1.7 billion in the quarter, up 16 percent from a year earlier.

This time, though, Goldman blamed its disappointing results on low volatility in the market-also known as Wall Street's "fear index"-making its customers less interested in trading their portfolios, especially foreign exchange and commodity assets". Non-interest income for the quarter rose 37.67 percent over the past year period to $7,510 million.

Firm wide, the bank's had net revenue of $8.03 billion compared with $6.34 billion in the same period a year earlier.

He explained that Goldman's clients traded less with the bank because markets were calmer and because it does not lend as much as competitors.

Goldman Sach's operating expenses were 15 percent higher both year-over-year and quarter-over-quarter, totaling $5.49 billion in Q1 2017.

Companywide revenue rose 27 percent to $8.03 billion, compared with the $8.33 billion average estimate of analysts surveyed by Bloomberg.

Goldman Sachs's stock dropped $9.88, or 4.4 percent, to $216.36.