The Goldman Sachs Group Inc. reported record quarterly net revenues of US$12.73 billion and net earnings of US$3.20 billion for its first quarter ended February 23.

Diluted earnings per common share were US$6.67 compared with US$5.08 for the first quarter of 2006 and US$6.59 for the fourth quarter of 2006. Annualized return on average tangible common shareholders’ equity was 44.7% and annualized return on average common shareholders’ equity was 38.0% for the first quarter of 2007.

The Investment Banking division produced record quarterly net revenues of US$1.72 billion, including record results in Financial Advisory and Debt Underwriting.

Fixed Income, Currency and Commodities generated record quarterly net revenues of US$4.60 billion, reflecting strong performance across all major businesses. Equities produced record quarterly net revenues of US$3.09 billion, 26% higher than the previous record set in the first quarter of 2006, reflecting strength across its major businesses too.

Additionally, Asset Management generated net revenues of US$1.07 billion, including record management and other fees of US$982 million. Assets under management increased 26% from a year ago to a record US$719 billion, with net asset inflows of US$35 billion during the quarter.

“We are very pleased with our first quarter’s results. They are a product of strong client activity across every region and every segment of our business,” said Lloyd Blankfein, chairman and CEO. “While market conditions will regularly shift, we are confident that our client-driven strategy will continue to produce the strongest results for the firm.”