Beats the estimate
Goldman Sachs Group (GS) reported net revenues of $10.62 billion, the highest quarterly earnings in four years. Its net profits surged by 40% to $2.84 billion when compared with the first quarter of the previous year. Along with strong mergers and acquisitions activity in the first quarter, higher equity and related offerings across the globe backed this performance.
The company reported $5.94 in diluted earnings per share, exceeding the Wall Street consensus estimate of $4.26. GS stock has returned 11% over the past three months due to the company’s robust investment banking business.
Goldman Sachs maintained strong liquidity and capital ratios. As of March 31, 2015, the Basel III common equity tier 1 ratio stood at 12.6% and global core liquid assets had increased to $175 billion.
Global investment bank
GS is a global investment bank, securities, and investment management firm. The company provides advisory, wealth management, and various other financial services to corporations, banks, high-net-worth individuals, and governments across the globe.
Goldman Sachs classifies its income under four segments:
- Investment Banking
- Institutional Client Services
- Investing & Lending
- Investment Management
The company’s investment banking peers include JPMorgan Chase (JPM), Morgan Stanley (MS), Citigroup (C), Credit Suisse (CS), Evercore Partners (EVR), Deutsche Bank (DB) and Greenhill (GHL). Together, they form 16.28% of the Financial Select Sector SPDR (XLF).