NEW YORK CITY (dpa-AFX) - Goldman Sachs Group Inc. (GS) on Tuesday reported a 27 percent increase in profit for the first quarter from last year, reflecting higher revenue across all its segments.
Both earnings per share and revenues for the quarter topped analysts' expectations. In addition, the company raised its quarterly dividend.
Fixed Income, Currency and Commodities Client Execution as well as Equities each produced its highest quarterly results in three years, in an environment characterized by high volatility and increase in client activity.
First-quarter net earnings applicable to the company's common shareholders rose to $2.74 billion or $6.95 per share from $2.16 billion or $5.15 per share in the same period last year.
On average, twenty one analysts polled by Thomson Reuters expected the company to report earnings of $5.58 per share. Analysts' estimates typically exclude special items.
Net revenues increased 25 percent to $10.04 billion from $8.03 billion last year and was the highest in three years. Wall Street expected revenues of $8.74 billion.
Net revenues in Investment Management rose 18 percent from last year to $1.77 billion, primarily due to higher management and other fees, primarily reflecting higher average assets under supervision as well as higher incentive fees and higher transaction revenues. During the quarter, total assets under supervision rose $4 billion to $1.50 trillion.
Meanwhile, net revenues in Institutional Client Services grew 31 percent from the year-ago period to $4.39 billion.
Of this, net revenues in Fixed Income, Currency and Commodities Client Execution or FICC were $2.07 billion, 23 percent higher than the year-ago quarter, and reflected improved market-making conditions and higher client activity.
Net revenues in Investing & Lending increased 43 percent from the year-ago quarter to $2.09 billion, while Investment Banking revenues grew 5 percent to $1.79 billion.
On April 16, 2018, Goldman Sachs' board of directors increased the company's quarterly dividend to $0.80 per common share from $0.75 per share. The dividend will be paid on June 28, 2018 to common shareholders of record on May 31, 2018.
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