Goldman Sachs blew past consensus forecasts on the top line and bottom line in the first quarter, bank said Tuesday.
The company reported earnings per share of $5.59 in the period, compared with estimates of $4.01. Revenue was $12.78 billion, versus estimates of $11.07 billion by analysts polled by ThomsonReuters.
Goldman's [GS 163.32 --- UNCH (0) 
The company is under investigation by US and European financial regulators after it was charged with fraud by the Securities and Exchange Commission for a debt instrument it created from subprime mortgages.
Goldman denied the SEC accusation, saying it was "completely unfounded."
Company CEO Lloyd Blankfein acknowledged the controversy in the company earnings statement.
"In light of recent events involving the firm, we appreciate the support of our clients and shareholders, and the dedication and commitment of our people," Blankfein said.
But the company is unlikely to be able to escape the shadow of the controversy; shares quickly rose 2 percent in premarket trading just after the release but then retreated and were up just 0.5 percent.
"Unfortunately I fear that no one is going to pay a lot of attention to the earnings," Brad Hintz, senior analyst at Bernstein Research, told "Squawk Box."The real issue will be what will happen to the Goldman franchise with regulators across the world chasing it, Hintz added.
Fixed income was among the brightest sports for Goldman's business compared to expectations, generating $7.39 billion. In keeping with the industry's conservative approach to risk, Goldman's Tier 1 capital ratio grew to 15 percent by the end of the quarter.
Net revenues in trading and principal investments came in at $10.25 billion, 43 percent higher year over year and 60 percent higher than the previous quarter.
Investment banking earnings were a bit lower than some analysts anticipated, generating $1.18 billion, which was 44 percent higher than the same period in 2009 when the financial system was collapsing but 28 percent lower than the previous quarter.
Financial advisory revenue also fell, dropping 12 percent to $464 million on weak mergers and acquisitions activity. Net revenue for equities was $2.35 billion, 18 percent higher than the previous quarter.
As compensation for Wall Street executives becomes increasingly controversial, Goldman said it cut pay and expenses to 43 percent of revenue, compared to 50 percent the previous year. The company said it was the lowest ratio ever for a first-quarter reporting period.
"There's a dose of reality thrust on investors when they see numbers like these, whatever may have happened in the past few days," Michael Holland, founder of Holland and Co., told Reuters. "People who want to use Goldman for political purposes may be putting parts of the business at risk...but overall Goldman has shown with these numbers that they are the best of the best."
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