Goldman Sachs reported its worst quarter in more than four years as volatile markets hit all of the firm’s business lines.

Net income slumped 56% in the first quarter of 2016 to $1.2bn, with revenues of $6.4bn, down from the $10.6bn figure the Wall Street giant saw in between January and March last year and the weakest result since 2011.

Lloyd Blankfein, chairman and chief executive, said that “the operating environment this quarter presented a broad range of challenges, resulting in headwinds across virtually every one of our businesses”.

Rival Morgan Stanley reported a 54% slump in first quarter earnings on Monday. Citi and Bank of America have also seen a sharp decline in income of late. 

Like most US investment banks, each have been hit by cheap oil prices, concerns over China’s economy, a stagnant IPO market and stock market volatility which has muted client activity across the board.

Goldman’s fixed income, currency, and commodities trading revenues plunged 47% due to "a challenging environment characterized by economic uncertainty and difficult market-making conditions."

Equities trading fell 23% due to "economic uncertainty, which contributed to higher levels of volatility and generally lower global equity prices."

Meanwhile, Goldman’s investment management arm experienced a 15% decline in revenues to $1.3bn.

In response, Goldman cut costs by 29%.  Non-compensation expenses were $2.1bn for the first quarter of 2016, the lowest quarterly amount in nearly seven years.