The Goldman Sachs Group Inc. today reported record net revenues, net earnings and diluted earnings per common share for its first quarter ended February 24.

Net revenues for the quarter were US$10.34 billion. Net earnings were US$2.64 billion, excluding incremental non-cash expenses of US$237 million related to the accounting for certain stock-based awards. Including these non-cash expenses, net earnings were US$2.48 billion.

Excluding the non-cash expenses of US$237 million, annualized return on average tangible common shareholders’ equity was 47.0% and annualized return on average common shareholders’ equity was 38.8% for the first quarter. Including these non-cash expenses, annualized return on average tangible common shareholders’ equity was 44.0% and annualized return on average common shareholders’ equity was 36.4%.

Record quarterly net revenues were 42% higher than its previous record. Investment banking produced net revenues of US$1.47 billion, its second best quarter and its best quarterly performance in nearly six years. The firm continued its leadership in investment banking, ranking first in worldwide completed mergers and acquisitions, public common stock offerings and initial public offerings for the fiscal year-to-date.

The fixed income, currency and commodities division generated record quarterly net revenues of US$3.74 billion, 42% higher than its previous record.

Equities produced record quarterly net revenues of US$2.45 billion, 33% higher than its previous record set in the first quarter of 2001, reflecting strength across all major businesses and regions.

Asset management also generated record quarterly net revenues of US$1.49 billion, including US$739 million of incentive fees. Net revenues were 89% higher than the previous record. Assets under management increased 18% from a year ago to a record US$571 billion, with net asset inflows of US$25 billion during the quarter.

Securities Services produced net revenues of US$491 million, 29% higher than the first quarter of 2005.

“This performance clearly demonstrates the depth of our client relationships and the strength and balance of our global franchise across investment banking, sales and trading, and investment management. Nearly all of our businesses produced record or near record results this quarter,” said Henry Paulson Jr., chairman and CEO, in a release. “While we know that we cannot expect to achieve these results every quarter, we continue to see attractive opportunities and high levels of client activity.”