“We are pleased with our performance in the first quarter, especially in the context of a muted start to the year.
Our core businesses generated solid results driven by our strong franchise positions. We are focused on new opportunities to grow and diversify our business mix and serve a broader range of clients globally. With improving
momentum across our businesses, we are confident that Goldman Sachs will generate attractive returns for our shareholders.”
NEW YORK, April 15, 2019 – The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $8.81 billion and net earnings of $2.25 billion for the first quarter ended March 31, 2019.
Diluted earnings per common share (EPS) was $5.71 for the first quarter of 2019 compared with $6.95 for the first quarter of 2018 and $6.04 for the fourth quarter of 2018.
Annualized return on average common shareholders’ equity (ROE) (1) was 11.1% and annualized return on average tangible common shareholders’ equity (ROTE) (1) was 11.7% for the first quarter of 2019.
? The firm ranked #1 in worldwide completed mergers and acquisitions for the year-to-date (2), which contributed to strong net revenues in Financial Advisory of $887 million. The firm also ranked #1 in worldwide equity and equity-related offerings and common stock offerings for the year-to-date (2).
? Investing & Lending net revenues included record quarterly net interest income in debt securities and loans of $835 million.
? In Investment Management, assets under supervision (3) increased $57 billion during the quarter to a record $1.60 trillion, including net inflows of $20 billion in long-term assets under supervision.
? The Standardized common equity tier 1 ratio (3) increased 40 basis points during the quarter to 13.7% (4) and the Basel III Advanced common equity tier 1 ratio (3) increased 30 basis points during the quarter to 13.4% (4).
? The firm returned $1.56 billion of capital to common shareholders during the first quarter of 2019, including $1.25 billion of share repurchases and $306 million of common stock dividends.
Net revenues were $8.81 billion for the first quarter of 2019, 13% lower than the first quarter of 2018 and 9% higher than the fourth quarter of 2018. The decrease compared with the first quarter of 2018 primarily reflected lower net revenues in Institutional Client Services and Investing & Lending.
Net revenues in Investment Banking were $1.81 billion for the first quarter of 2019, essentially unchanged compared with the first quarter of 2018 and 11% lower than the fourth quarter of 2018.
Net revenues in Financial Advisory were $887 million, 51% higher than the first
quarter of 2018, reflecting an increase in completed mergers and acquisitions
Net revenues in Underwriting were $923 million, 24% lower than the first quarter of 2018, due to significantly lower net revenues in equity underwriting, primarily reflecting a significant decline in industry-wide initial public offerings, and lower net revenues in debt underwriting, primarily due to significantly lower net revenues from leveraged finance transactions.
The firm’s investment banking transaction backlog (3) decreased compared with the end of 2018.
Institutional Client Services
Net revenues in Institutional Client Services were $3.61 billion for the first quarter of 2019, 18% lower than the first quarter of 2018 and 49% higher than the fourth quarter of 2018.
Net revenues in Fixed Income, Currency and Commodities (FICC) Client Execution
were $1.84 billion, 11% lower than the first quarter of 2018, reflecting lower net revenues in interest rate products, currencies and credit products, partially offset by higher net revenues in mortgages and commodities. During the quarter, FICC Client Execution operated in an environment characterized by improved market conditions compared with the fourth quarter of 2018, while levels of volatility were lower and client activity remained low.
Net revenues in Equities were $1.77 billion, 24% lower than the first quarter of 2018, primarily due to significantly lower net revenues in equities client execution, particularly in derivatives, compared with a strong prior year period. In addition, commissions and fees were lower, reflecting lower market volumes, and net revenues in securities services were lower, primarily reflecting lower average customer balances. During the quarter, Equities operated in an environment characterized by improved market conditions, however client activity and levels of volatility were both lower compared with the fourth quarter of 2018.
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