8-KEarnings & ResultsOther EventsExhibits & Filings

GOLDMAN SACHS GROUP INC 8-K Report, Financial Results (Apr 17, 2012)

Filed April 17, 2012For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

The Goldman Sachs Group, Inc. (GS) filed an 8-K on April 17, 2012, to report its first-quarter 2012 financial results. The firm reported net revenues of $9.95 billion and net earnings of $2.11 billion, translating to diluted earnings per share of $3.92. This represents a significant increase from the first quarter of 2011, where diluted EPS was $1.56 (adjusted for a preferred stock dividend impact). The annualized return on equity was 12.2%. Key drivers for the quarter included strong performance in Investing & Lending, which benefited from increased equity prices and tighter credit spreads, and a rebound in Institutional Client Services revenue compared to the prior quarter. However, Investment Banking revenues saw a decline year-over-year, primarily due to lower underwriting activity. The firm also announced an increase in its quarterly common stock dividend to $0.46 per share.

Key Highlights

  • 1Net revenues for Q1 2012 reached $9.95 billion, with net earnings of $2.11 billion.
  • 2Diluted earnings per common share were $3.92, a substantial increase from $1.56 in Q1 2011 (adjusted).
  • 3Annualized return on equity (ROE) stood at 12.2% for the quarter.
  • 4Investing & Lending segment showed strong revenue growth, aided by market appreciation and improved credit spreads.
  • 5Institutional Client Services revenues rebounded significantly from Q4 2011 but were down year-over-year.
  • 6Investment Banking revenues decreased by 9% year-over-year, primarily due to lower underwriting volumes.
  • 7The quarterly common stock dividend was increased to $0.46 per share.

Frequently Asked Questions

For the first quarter ended March 31, 2012, Goldman Sachs reported net revenues of $9.95 billion and net earnings of $2.11 billion. Diluted earnings per common share were $3.92.

While Institutional Client Services rebounded strongly from the prior quarter, it was down 14% year-over-year. Investing & Lending saw a significant year-over-year decline of 29%. Investment Banking revenues decreased by 9% year-over-year, mainly due to weaker underwriting activity. Investment Management revenues also declined by 8% year-over-year.

Yes, the Board of Directors increased the firm's quarterly common dividend to $0.46 per common share from $0.35 per common share.

The filing indicates that the firm's investment banking transaction backlog was essentially unchanged compared to the end of 2011. However, revenue in the Investment Banking segment decreased by 9% year-over-year, reflecting lower industry-wide activity in equity underwriting and a decline in leveraged finance for debt underwriting.