Goldman Sachs Group Inc Smashes Earnings Estimates

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.

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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.