Goldman Sachs saw net revenues in its asset & wealth management arm rise 24% year-on-year in Q1 2023 to hit $3.22bn.
However, this was 10% lower than in Q4 2022.
Of this, $2.28bn was due to management and other fees, a record, $53m in incentive, and $354m came from private banking and lending.
The increase was attributed to net gains in equity investments compared with net losses in the prior year period. In addition, there were higher management and other fees, as well as higher net revenues in debt investments.
Furthermore, net revenues in private banking and lending included a loss of close to $470m due to the partial sale of the Marcus loans portfolio.
In addition, assets under supervision increased $125bn during the quarter to hit a record $2.67trn.
Goldman Sachs in Q1 2023
The group as a whole witnessed net revenues of $12.22bn and net profit of $3.23bn for the first quarter.
Global banking & markets garnered a quarterly net revenue of $8.44bn, driven by strong performances in currency and commodities.
The bank was also first for completed M&A in Q1 2023.
David Solomon, chairman and chief executive, commented: “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.”
Goldman Sachs recently announced that Nishi Somaiya, global co-head of Growth Equity, will transition to Wealth Management and become global head of Private Banking, Lending, and Deposits.
Somaiya will work with teams from Private Wealth Management, Workplace & Personal Wealth, Marcus Savings & Invest, and the wider firm to develop creative solutions and drive future franchise expansion in her new role.
In addition, Somaiya joined the firm in 2001 and was promoted to managing director in 2011 before becoming a partner in 2016. She will rely on her decades of experience as an investor with expertise in credit.