(Reuters) -Goldman Sachs Group Inc reported first-quarter profit that nearly halved on Thursday, as capital markets activity normalized from bumper levels a year ago, weighing on the bank’s investment banking business.

With the U.S. Federal Reserve beginning to wean the economy off pandemic-era support, dealmaking slowed in the quarter and cast a pall over some of Goldman’s most lucrative businesses.

Profit applicable to common shareholders fell to $3.83 billion, or $10.76 per share, in the quarter ended March 31, from $6.71 billion, or $18.60 per share, a year ago.

Analysts had expected a profit of $8.89 per share, according to Refinitiv data. It was not immediately clear if the estimates were comparable to the reported figures.

Total net revenue fell to $12.93 billion in the quarter, down nearly 27% from last year.

(Reporting by Niket Nishant in Bengaluru and Matt Scuffham in New York; Editing by Arun Koyyur)