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Goldman Sachs Q1 Profit Declines, But Tops Estimates; Hikes Dividend

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The Goldman Sachs Group, Inc. (GS) reported Monday that net earnings applicable to common shareholders for the first quarter decreased to $2.18 billion or $5.71 per share from $2.74 billion or $6.95 per share in the year-ago quarter.

On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $4.89 for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter declined 13 percent to $8.81 billion from last year, primarily reflected lower net revenues in Institutional Client Services and Investing & Lending. Analysts expected revenue of $9.04 billion for the quarter.

Institutional Client Services net revenues decreased 18 percent to $3.61 billion, and
Investing & Lending net revenues declined 14 percent to $1.84 billion from last year.

Net revenues in Investment Banking were unchanged from last year at $1.81 billion, and net revenues in Investment Management declined 12 percent to $1.56 billion from the previous year.

Provision for credit losses for the quarter was $224 million, compared to $44 million for the first quarter of 2018.

Operating expenses declined 11 percent to $5.86 billion, due to significantly lower compensation and benefits expenses, reflecting a decline in operating performance.

Annualized return on average common shareholders' equity (ROE) was 11.1 percent and annualized return on average tangible common shareholders' equity (ROTE) was 11.7 percent for the first quarter of 2019.

Additionally, the Board of Directors of Goldman Sachs increased the quarterly dividend to $0.85 per common share from $0.80 per common share. The dividend will be paid on June 27, 2019 to common shareholders of record on May 30, 2019.

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