01—Abstract
Summary
Summary of the 10-Q filed May 10, 2012. Cited figures are marked; the original filing is the authoritative source.
Goldman Sachs Group Inc. (GS) reported net earnings of $2.11 billiona for the first quarter of 2012, a decrease from $2.74 billion in the first quarter of 2011.
Diluted earnings per share were $3.92b, up from $1.56 in the prior year period, but the prior year period's earnings were significantly impacted by a preferred stock redemption. Net revenues for the quarter were $9.95 billion, down 16% year-over-year, driven by lower results across all business segments, particularly in Institutional Client Services and Investing & Lending. Despite lower revenues, the firm's financial condition remained solid, with total assets growing to $950.93 billion.
Capital ratios remained strong, with a Tier 1 capital ratio of 14.7% and a Tier 1 leverage ratio of 7.1%. The company also announced an increase in its quarterly common stock dividend to $0.46c per share, signaling confidence in its ongoing performance. The firm continues to navigate a complex economic environment with ongoing European sovereign debt concerns and U.S. economic uncertainties impacting client activity and market conditions.
02—Key points
Key Highlights
- Net earnings of $2.11 billion for Q1 2012, down from $2.74 billion in Q1 2011.
- Diluted EPS of $3.92 for Q1 2012, compared to $1.56 in Q1 2011 (adjusted for preferred stock redemption in Q1 2011).
- Net revenues decreased by 16% year-over-year to $9.95 billion.
- Total assets increased to $950.93 billion.
- Tier 1 capital ratio remained strong at 14.7%, and Tier 1 leverage ratio was 7.1%.
- Quarterly common stock dividend increased to $0.46 per share.
- Level 3 financial assets represented 5.0% of total assets and 7.2% of total financial assets at fair value, indicating a moderate level of valuation complexity.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2012filed May 10, 2012Financial Statements
Q1 FY2012 against Q1 FY2011
| Line item | Q1 FY2012Q1 FY2011 | Change |
|---|---|---|
| Net Income | $2.11B$2.73B | −22.9% |
| EPS (Basic) | $4.05$1.66 | +144.0% |
| EPS (Diluted) | $3.92$1.56 | +151.3% |
| Shares Outstanding (Basic) | 510.80M540.60M | −5.5% |
| Shares Outstanding (Diluted) | 529.20M583.00M | −9.2% |
05—Questions
Frequently Asked Questions
What was Goldman Sachs' net earnings for the first quarter of 2012?
Goldman Sachs reported net earnings of $2.11 billion for the first quarter of 2012.
How did net revenues compare to the previous year?
Net revenues decreased by 16% year-over-year, from $11.89 billion in Q1 2011 to $9.95 billion in Q1 2012, driven by lower performance across all business segments.
What is the firm's capital position as of March 31, 2012?
Goldman Sachs maintained strong capital ratios as of March 31, 2012, with a Tier 1 capital ratio of 14.7% and a Tier 1 leverage ratio of 7.1%. Total shareholders' equity was $71.66 billion.
What is the significance of the Level 3 assets disclosure?
Level 3 assets are financial instruments whose valuation inputs are unobservable. The disclosure that Level 3 assets represented 5.0% of total assets indicates that a relatively small portion of the firm's assets are valued using significant unobservable inputs, suggesting a moderate level of valuation complexity and subjectivity.
06—Continue