Goldman Sachs released the earnings results from its first quarter before opening bell this morning, posting earnings of $5.94 per share on revenue of $10.62 billion, which was the most in four years. Analysts had been looking for earnings of $4.26 per share on $9.35 billion in revenue.
In the same quarter a year ago, Goldman Sachs reported earnings of $4.02 per share on $9.3 billion in revenue.
Key metrics from Goldman Sachs’ earnings report
The firm reported net revenues of $1.91 billion for its Investment Banking segment, a 7% year over year increase and 32% quarter over quarter increase. The firm’s Financial Advisory segment saw net revenues rise 41% from last year to $961 million. Underwriting net revenues fell 14% to $944 million, while equity underwriting revenues increased. The backlog for Goldman Sachs’ Investment Banking transactions fell compared to the end of 2014.
At this year's SALT New York conference, Jean Hynes, the CEO of Wellington Management, took to the stage to discuss the role of active management in today's investment environment. Hynes succeeded Brendan Swords as the CEO of Wellington at the end of June after nearly 30 years at the firm. Wellington is one of the Read More
Goldman Sachs posted $5.46 billion in net revenues for its Institutional Client Services business, a 23% year over year increase and a 73% increase quarter over quarter. The firm’s Fixed Income, Currency and Commodities Client Execution recorded $3.13 billion in revenue, a 10% increase from last year. The Equities business saw $2.33 billion in revenue, a 46% year over year increase.
The firm’s Investment and Lending business recorded $1.67 billion in net revenue, while its Investment Management segment posted $1.58 billion in net revenues.
Goldman Sachs continues strong capital ratios
Goldman Sachs’ book value per common share rose by $5.38 to $168.39 per share, marking the biggest quarterly increase in more than five years. Tangible book value per share was $159.11. As of the end of March, the firm had a Common Equity Tier 1 ratio of 11.4% under the Standardized approach and 12.6% under the Basel III Advanced approach.
The firm’s board of directors declared a dividend of 65 cents per share, an increase from the previous dividend of 60 cents per share. The firm still has 18.6 million shares left on its repurchase authorization program.