Goldman Sachs unveils multi-billion pound pay and bonus pot

Goldman, which is now the subject of a UK regulatory investigation in the wake of US fraud claims, said net income was 3.46 billion US dollars (2.24bn).

The bank said the proportion of net revenues allocated for compensation and benefits was its lowest ever for the quarter at 43 per cent.

Goldman, which employs 5,500 people in the UK, said its performance in the first quarter of this year reflected "more signs of growth" in the economy.

The firm's results were well ahead of expectations, with a 91 per cent rise in profits compared to the first quarter last year. But the figure was 30 per cent lower than the bumper 4.9 billion dollar (3.2bn) profits seen in the final three months of last year.

Revenues were up 36 per cent on 2009 at 12.8 billion dollars.

The results follow a Financial Services Authority (FSA) decision to launch a "formal enforcement investigation" into Goldman in relation to Securities and Exchange Commission (SEC) allegations. US regulators have started a civil lawsuit against the investment bank, alleging that Goldman failed to disclose that one of its clients helped create – and then bet against – sub-prime mortgage securities that Goldman sold to investors.

It claimed investors – including the Royal Bank of Scotland – lost a billion dollars (650m) as a result of the alleged fraud, which Goldman has vigorously denied.

The FSA said it would "be liaising closely with the SEC" in its review of Goldman.

Chief executive Lloyd Blankfein said: "In light of recent events involving the firm, we appreciate the support of our clients and shareholders, and dedication and commitment of our people."