The US firm became the latest to report its quarterly financial figures.

Goldman Sachs said yesterday that it logged net revenues in its wealth and asset management arm of $3.22 billion in the first quarter of 2023, rising 24 per cent on the same period a year earlier, but 10 per cent down from the previous quarter.

The year-on-year rise reflected net gains in equity investments compared with net losses in the prior year period, higher management and other fees and higher net revenues in debt investments.

The Wall Street firm said that net revenues in private banking and lending included a loss of about $470 million related to a partial sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to held for sale (largely offset by a related reserve reduction of around $440 million in provision for credit losses). 

The increase in management and other fees primarily reflected the inclusion of NN Investment Partners (NNIP) and a reduction in fee waivers on money market funds. The increase in debt investments net revenues reflected net mark-ups compared with net mark-downs in the prior year period. 

Net revenues in private banking and lending were significantly lower, due to the loss related to the Marcus loans portfolio, partially offset by the impact of higher deposit spreads. Incentive fees were also lower, the group said in a statement. 

For the whole of Goldman Sachs, assets under supervision increased by $125 billion during the quarter to a record $2.67 trillion.

The firm reported diluted earnings per common share of $8.79 for the first quarter of 2023 compared with $10.76 for the first quarter of 2022 and $3.32 for the fourth quarter of 2022. It reported net revenues of $12.22 billion and net earnings of $3.23 billion for the first quarter ended 31 March.

David Solomon, chief executive and chairman, alluded to the recent bank turmoil caused by the collapse of Silicon Valley Bank and other firms. 

“The events of the first quarter acted as another real-life stress test, demonstrating the resilience of Goldman Sachs and the nation’s largest financial institutions. Our deeply rooted risk management culture, strong liquidity and robust capital position enabled us to continue to support our clients and deliver solid performance. We are operating from a position of strength and remain focused on executing our strategy to further grow our leading Global Banking & Markets and Asset & Wealth Management franchises,” he said.