Natasha Taghavi, Reporter in London, Wealth Briefing

Goldman Sachs Bank USA has confirmed it has won approval to operate a private bank in the UK, following its expansion plans announced in October 2012, making the move after the Goldman Sachs firm reported first-quarter results.

In a filing with the UK’s Financial Conduct Authority, Goldman Sachs Bank USA – the US commercial banking unit – was granted the approval for its UK operation on 21 March.

The new London-based branch will provide advice on investments, deposit-taking, dealing on an agency and principal basis, as well as the safeguarding and administration of assets, according to the FCA filing.

“We are pleased that the request has been approved. The bank’s clients are global and it is important for a number of them to be able to transact with the bank in London,” said a spokesperson at the firm.

Stephen Davies, who currently serves in the finance division of Goldman Sachs, is the UK branch manager, while Ralf Hafner, managing director within credit risk management and advisory at the bank, is head of risk for the branch. Rothesay Life will also hold a management role at the UK branch.

Goldman Sachs Bank US currently has branches in New York, where the firm is based, as well as Boston, Dallas, Salt Lake City and Jersey City.

Goldman Sachs, meanwhile, has reported a fall in net earnings from $2.89 billion at 31 December, 2012, to $2.26 billion in the first quarter of 2013, a decrease of 22 per cent for the quarter. Earnings were, however, up 7 per cent on the previous year (Q1 2012: $2.10 billion). Net revenues in investment management were $1.32 billion for Q1 2013, 12 per cent higher than in the first quarter of 2012, but 13 per cent lower than the fourth quarter of 2012.

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