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Goldman Sachs Soars Past Earnings Estimates

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Goldman Sachs Group Inc (NYSE:GS) released the results from the first quarter this morning before opening bell, posting revenue of $9.33 billion, a decline from last year’s $10.09 billion. Earnings per share for the quarter fell from $4.29 a share last year to $4.02 per share this year, but it was still enough to beat consensus at $3.48 per share.

Breaking down Goldman Sachs’ results

According to this morning’s release, Goldman Sachs Group Inc (NYSE:GS) continued to rank first in global completed mergers and acquisitions so far. It also ranked first in equity and equity-related offerings, common stock offerings and initial public offerings.

The firm’s Investment Banking division posted $1.78 billion in net revenues, which is the division’s highest quarterly number since 2007. Investment Management saw $1.57 billion in net revenues, with assets under supervision rising to a new record of $1.08 trillion. That includes record quarterly net inflows in long-term assets under supervision of $40 billion.

Net revenues from Institutional Client Services declined 13% year over year to $4.45 billion. Fixed Income, Currency and Commodities Client Execution revenue fell 11% to $2.85 billion. Net revenues from equities were $1.6 billion, a 17% year over year decline. Excluding revenues from Goldman Sachs Group Inc (NYSE:GS)’s reinsurance business, which it sold during the second quarter of last year, net revenues in the division fell just 6% year over year.

The firm’s Investing and Lending division posted net revenues of $1.53 billion, a 26% year over year and sequential decline. Goldman Sachs Group Inc (NYSE:GS) reported net gains of $702 million during the quarter from equity investments, mostly of private equities and reflecting company-specific events.

In Investment Management, net revenues rose 20% to $1.57 billion for the quarter, as the firm raised its incentive and other management fees.

Goldman Sachs updates capital standing

Goldman Sachs Group Inc (NYSE:GS)’s board of directors declined a 55 cent per common share dividend, which will be paid on June 27 to shareholders of record on May 30. The firm also declared dividends for its Series A, B, C, D, I, and J Preferred Stock. Those dividends range from $236.98 a share for Series A up to $387.50 for Series B.

Goldman Sachs Group Inc (NYSE:GS) bought back 10.3 million common shares at an average cost of $166.58 a share for a total of $1.72 billion. The firm still has 46.9 million shares in repurchase authorization remaining.

Tier 1 capital ratio was 16.3%, while the Common Equity Tier 1 ratio was 14.6% as of the end of March. Both reflect the regulatory revisions which went into effect Jan. 1. Goldman Sachs Group Inc (NYSE:GS) will begin computing capital ratios under the Basel III Advanced approach starting with the current quarter.

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