Goldman Sachs Group Inc., the world’s most profitable securities firm before the financial crisis, reported earnings that topped analysts’ estimates on a 63-percent gain in revenue from underwriting stocks and bonds.

First-quarter net income rose 7 percent to $2.26 billion, or $4.29 a share, from $2.11 billion, or $3.92, a year earlier, the New York-based company said today in a statement. That was higher than all 24 analysts’ estimates in a Bloomberg survey.

Record debt-underwriting revenue and cost cuts helped Chief Executive Officer Lloyd C. Blankfein increase return on equity to 12.4 percent from 12.2 percent a year earlier. Blankfein, 58, has sought to boost returns by cutting $1.9 billion in expenses and benefiting as trading volume increases and some competitors exit business lines.

“The key positive is strong investment-banking fees,” said Richard Staite, an analyst at Atlantic Equities LLP in London, who has a neutral rating on Goldman Sachs stock. “Ultimately revenues remain as the key share-price driver.”

Goldman Sachs gained 0.5 percent to $147.16 in New York trading at 9:32 a.m.. The stock gained 15 percent this year through yesterday after advancing 41 percent in 2012. The shares reached $193.60 on Oct. 14, 2009.

Revenue rose 1 percent to $10.1 billion. Compensation, the firm’s biggest expense, fell 1 percent to $4.34 billion and amounted to 43 percent of revenue for the quarter, down from 44 percent a year earlier. The ratio was 38 percent for all of 2012.

Compensation Ratio

“Their comp ratio at 43 percent is always good,” said Brad Hintz, an analyst at Sanford C. Bernstein & Co. who rates Goldman Sachs shares outperform. “We think Goldman is trying to boost the performance of trading by repricing their trading operations,” Hintz said, adding that he expects the full-year figure to be below last year’s ratio.

First-quarter revenue from investment banking, the business run globally by Richard J. Gnodde, David M. Solomon and John S. Weinberg, climbed 36 percent to $1.57 billion. That topped JPMorgan Chase & Co.’s $1.43 billion in investment-banking revenue for the first time in more than five years.

The figure included $484 million of financial-advisory revenue, including fees for takeover advice, a drop of 1 percent. Revenue from underwriting, a business led by Stephen M. Scherr, climbed to $1.08 billion in the first quarter, including $694 million from debt underwriting and $390 million for equity offerings.

Equity Underwriting

Goldman Sachs held the top spot among arrangers of global equity, equity-linked and rights offerings in the first quarter, according to data compiled by Bloomberg. It ranked second in advising on announced mergers and acquisitions and fifth in underwriting U.S. bonds, the data show. The firm said its investment-banking backlog fell from the end of December.

Fixed-income, currency and commodity trading revenue was $3.22 billion, down 7 percent from a year earlier and up 58 percent from the fourth quarter. Excluding a $42 million accounting adjustment, revenue was $3.26 billion. That compared with estimates of $3.25 billion from Credit Suisse Group AG’s Howard Chen and $3.1 billion from Staite at Atlantic Equities.

Revenue from the equities division, overseen by co-Chief Operating Officers R. Martin Chavez, Michael D. Daffey and Paul M. Russo, declined 15 percent from a year earlier to $1.92 billion. Excluding a $35 million accounting adjustment, revenue was $1.96 billion. That missed Staite’s $2.05 billion estimate, and matched Barclays Plc’s Roger Freeman’s projection.

“The potential for macroeconomic instability was felt in the quarter and constrained overall corporate and investor activity,” Blankfein said in the statement.

Sales, Trading

Total revenue from sales and trading, led globally by Pablo J. Salame and Isabelle Ealet, was $5.14 billion. That was below the $5.45 billion at Citigroup Inc. and $6.09 billion at JPMorgan.

Citigroup yesterday reported that fixed-income trading rose 69 percent from the fourth quarter, topping analysts’ estimates. JPMorgan, the biggest U.S. bank by assets, reported earnings on April 12 that beat estimates as expenses dropped 16 percent.

Bank of America Corp., the second-largest lender, is set to release results tomorrow. Morgan Stanley, the sixth-biggest bank, is due on April 18.

Investing and Lending, which includes gains and losses on Goldman Sachs’s own investments in stocks, debt, real estate, private equity and hedge funds, as well as loans, posted first- quarter revenue of $2.07 billion, up from $1.91 billion a year earlier and the highest in two years.

ICBC, Facebook

Investing and Lending includes Goldman Sachs’s stake in Industrial & Commercial Bank of China Ltd., that country’s biggest lender, as well as Facebook Inc., operator of the world’s largest social network. The segment also books profits or losses from the Special Situations Group, a proprietary investing unit led globally by Hong Kong-based Jason M. Brown.

Revenue from asset management rose 12 percent to $1.32 billion. Total assets under management increased $3 billion during the quarter to $968 billion.

Investors are seeking more information about future dividend increases and share buybacks. While Goldman Sachs’s capital proposal was approved by the Federal Reserve last month, the regulator said Goldman Sachs must submit a new plan to address weaknesses related to projections of losses and revenue.

Dividend History

Last year, the bank increased its dividend twice, boosting the quarterly payout to 50 cents a share from 35 cents, and repurchased $4.64 billion of stock after winning Fed approval. The bank said today it held the dividend at that level for its next payout on June 27 and repurchased $1.52 billion in stock during the first quarter.

That was more than the $1.3 billion estimated by Credit Suisse’s Chen. Goldman Sachs also said its board authorized it to buy back another 75 million shares.

Warren Buffett’s Berkshire Hathaway Inc. reached an agreement with Goldman Sachs last month to settle warrants granted at the height of the 2008 financial crisis, which will make Berkshire one of the bank’s largest shareholders without paying anything.

Berkshire had the right to buy 43.5 million Goldman Sachs common shares for $115 apiece until Oct. 1. Under the deal, Buffett’s firm will get Goldman Sachs stock equal to the difference between the average closing price during the 10 trading days before Oct. 1 and the exercise price, multiplied by 43.5 million.