Goldman Sachs loses out in first quarter

The company earnings are down.

Goldman Sachs booth, Getty Images.
Goldman Sachs booth, Getty Images.

The investment banking and securities company Goldman Sachs Group and subsidiaries has reported net earnings of $2.11bn for the first quarter ended 31 March 2012, compared to $2.74bn for the same period last year.

Net revenues (including net interest income) were $9.95bn, compared to $11.89bn for the same period last year.
 
Fixed income, currency and commodities client execution generated net revenues of $3.46bn, reflecting improved activity levels across most major businesses.
 
During the quarter, net revenues of investment banking, institutional client services, investing and lending, and investment management were $1.15bn, $5.71bn, $1.91bn, and $1.18bn respectively.
 
Total operating expenses were $6.77bn, compared to $7.85bn for the same period last year. Non-compensation expenses were $2.39bn, 9 per cent lower than the first quarter of 2011 and 8 per cent lower than the fourth quarter of 2011.
 
Lloyd Blankfein, chairman and CEO of the company, said: "We are pleased with the firm’s solid performance for the quarter. 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."
 
At 31 March 2012, the company’s total assets were $951bn, compared to $923bn same period last year, while total capital was $ $243.25bn, compared to $ $71.66bn.