Goldman Sachs Reports First Quarter Earnings Per Common Share Of $3.92 And Increases The Quarterly Dividend To $0.46 Per Common Share

The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $9.95 billion and net earnings of $2.11 billion for the first quarter ended March 31, 2012. Diluted earnings per common share were $3.92 compared with $1.56  ⁽¹⁾ for the first quarter of 2011 and $1.84 for the fourth quarter of 2011. Annualized return on average common shareholders’ equity (ROE)  ⁽²⁾ was 12.2% for the first quarter of 2012.

Highlights

• Goldman Sachs continued its leadership in investment banking, ranking first in worldwide announced mergers and acquisitions for the year-to-date.  ⁽³⁾
• Fixed Income, Currency and Commodities Client Execution generated net revenues of $3.46 billion, reflecting improved activity levels across most major businesses.
• Book value per common share and tangible book value per common share  ⁽⁴⁾ both increased approximately 3% during the quarter to $134.48 and $123.94, respectively.
• The firm continues to manage its liquidity and capital conservatively. The firm’s global core excess liquidity  ⁽⁵⁾ was $171 billion as of March 31, 2012. In addition, the firm’s Tier 1 capital ratio under Basel 1  ⁽⁶⁾ was 14.7% and the firm’s Tier 1 common ratio under Basel 1  ⁽⁷⁾ was 12.9% as of March 31, 2012, up from 13.8% and 12.1%, respectively, as of the end of 2011.

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“We are pleased with the firm’s solid performance for the quarter,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “Stronger global markets, together with the firm’s deep and broad client franchise, drove improved results across most of our businesses. Because client activity remains relatively low in certain areas, especially in parts of Investment Banking, we believe that our mix of businesses gives the firm significant room for revenue growth as economic and market conditions continue to improve.”

Net Revenues

Investment Banking

Net revenues in Investment Banking were $1.15 billion, 9% lower than the first quarter of 2011 and 35% higher than the fourth quarter of 2011. Net revenues in Financial Advisory were $489 million, 37% higher than the first quarter of 2011. Net revenues in the firm’s Underwriting business were $665 million, 27% lower than the first quarter of 2011. Net revenues in equity underwriting were significantly lower than the first quarter of 2011, primarily reflecting a decline in industry-wide activity. Net revenues in debt underwriting were lower compared with a strong first quarter of 2011, primarily reflecting a decline in leveraged finance activity. The firm’s investment banking transaction backlog was essentially unchanged compared with the end of 2011. ⁽⁸⁾

Institutional Client Services

Net revenues in Institutional Client Services were $5.71 billion, 14% lower than the first quarter of 2011 and 87% higher than the fourth quarter of 2011.

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