The Goldman Sachs (GS) Q1 2023 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Katie - Facilitator

Good morning, my name is Katie, and I will be your conference facilitator today. I would like to welcome everyone to the Goldman Sachs first quarter 2023 earnings conference call. This call is being recorded today, April 18, 2023. Before we begin, do you miss how do you make it mean in your conference?

Carey Halio - Head of Investor Relations and Chief Strategy Officer

Good morning. This is Carey Halio, Head of Investor Relations and Chief Strategy Officer at Goldman Sachs. Welcome to our first quarter earnings conference call. Today, we will reference our earnings presentation, which can be found on the Investor Relations page of our website at www.goldmansachs.com. Information on forward-looking statements and non-GAAP measures appear on the earnings release and presentation. The audio cast is copyrighted material of the Goldman Sachs Group Inc. and may not be located, reproduced, or rebroadcast without our consent. I'm joined today by Chairman and Chief Executive Officer David Solomon and our Chief Financial Officer, Dennis Coleman. I'll now pass the call to David.

David Solomon - Chairman and Chief Executive Officer

Good morning, Carey, and everyone. Thank you for joining us. In the first quarter, we delivered solid performance in a challenging environment, producing net revenues of $12.2 billion and generating earnings per share of $8.79 and an ROE of 11.6% and an ROTCE of 12.6%. This quarter was certainly volatile, particularly for the banking sector, as we had a fairly benign operating environment at the start of the year. In March, we witnessed the collapse of two regional banks in the United States that quickly spread through a number of institutions across the financial sector. We saw ratings downgrades and steep valuation declines in very short order. Stresses were not limited to the US. We also saw regulators help arrange the combination of Switzerland's two largest financial institutions. It's important to appreciate that the size of disruption of the market moves during the period was staggering, particularly in interest rates. To give you a sense of the magnitude, there have been just four days in the past 25 years where I've seen two-year yields move by 50 basis points or more intraday, and one was in September 2008. Three of them occurred in mid-March this year. Monday, March 13th was the biggest one-day move in US Treasury two-year yields over 35 years.