Early Access

10-QPeriod: Q1 FY2010

GOLDMAN SACHS GROUP INC Quarterly Report for Q1 Ended Mar 31, 2010

Filed May 10, 2010For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

Goldman Sachs Group Inc. reported a strong first quarter of 2010, with net earnings of $3.46 billion, or $5.59 per diluted share, a significant increase from $1.81 billion, or $3.39 per diluted share, in the same period of 2009. This performance was primarily driven by a substantial rebound in Trading and Principal Investments, which saw a revenue increase of 43% year-over-year, benefiting from improved results in Principal Investments, FICC (Fixed Income, Currency, and Commodities), and Equities. Investment Banking also showed robust growth, with a 44% increase in net revenues driven by strong underwriting performance. The firm's improved profitability is also reflected in its operating expenses, where the compensation and benefits as a percentage of net revenues fell to 43.0% from 50.0% in the prior year's first quarter, reaching a company record low for the period. Goldman Sachs actively managed its capital during the quarter, repurchasing approximately $2.27 billion of its common stock. The firm maintained strong capital ratios, with a Tier 1 capital ratio of 15.0% as of March 31, 2010, well above regulatory requirements. Overall, the report indicates a solid recovery and improved operational performance for Goldman Sachs heading into the second quarter of 2010.

Financial Highlights

25 data points
Beta

Net Income

$3.46B

EPS (Diluted)

$5.59

Total Assets

$880.53B

Free Cash Flow

-$7.50B

Financial Statements
Beta
Net Income$3.46B
EPS (Basic)$6.02
EPS (Diluted)$5.59
Shares Outstanding (Basic)546.00M
Shares Outstanding (Diluted)590.00M

Key Highlights

  • 1Net earnings increased significantly to $3.46 billion ($5.59 per diluted share) in Q1 2010 from $1.81 billion ($3.39 per diluted share) in Q1 2009.
  • 2Trading and Principal Investments revenue grew 43% to $10.25 billion, driven by strong performance in FICC, Equities, and Principal Investments.
  • 3Investment Banking revenue increased 44% to $1.18 billion, with strong growth in both underwriting and financial advisory.
  • 4The compensation and benefits expense ratio to net revenues decreased to 43.0% from 50.0% in the prior year quarter.
  • 5Goldman Sachs repurchased $2.27 billion of its common stock during the quarter.
  • 6The firm maintained strong capital adequacy, with a Tier 1 capital ratio of 15.0% as of March 31, 2010.

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