The investment bank’s first-quarter income fell 72% after it paid $1.64bn in dividends to Berkshire Hathaway.
Excluding the preferred stock dividends, net earnings were $2.55bn or $4.38 per share for the first quarter of 2011.
For the first quarter of 2011, net revenues, including net interest income, dropped 7% to $11.89bn from $12.78bn last year.
Institutional client services’ revenues fell 22% to $6.65bn, mainly reflecting a 28% drop in fixed income, currency and commodities client execution, despite improved client activity levels.
Net revenues in Equities also were 7% lower than last year.
However, Goldman Sachs registered a 5% rise in investment banking revenues, 16% rise in investment management, as well as a 37% growth rise in investing and lending revenues.
Berkshire Hathaway helped shore up confidence in Goldman Sachs during the darkest period of the financial crisis by making a $5 billion investment in September 2008. In return, Berkshire received preferred shares which carried annual dividends of 10%.
While Goldman Sachs has posted ever-widening profits since the crisis, it received permission only last month from the Federal Reserve to repay the investment.
Goldman will likely take another hit to earnings in the second quarter because it repaid Berkshire on 18 April 2011.
