Goldman Sachs reported net revenues of $34.16 billion and net earnings of $7.48 billion for the year ended 31 December 2012, up from $28.8 billion and $4.4 billion respectively, from a year ago. 

Fourth quarter net revenues were $9.24 billion, up 11 per cent on the previous quarter and 53 per cent year-over-year. Net earnings were $2.89 billion, 91 per cent higher than at 30 September 2012 and up from $1.01 billion in the prior year.

Net revenues in investment management were $5.22 billion for 2012, 4 per cent higher than 2011. This was due to “significantly higher” incentive fees, partially offset by lower transaction revenues and slightly lower management and other fees, the Wall Street giant said.

For the quarter, net revenues in investment management finished at $1.52 billion, 20 per cent higher than the fourth quarter of 2011 and 26 per cent higher than the third quarter of 2012.

During the year, assets under supervision grew $70 billion to reach $965 billion. Assets under management ended 2012 at $854 billion, up $26 billion. Goldman Sachs said this reflected net market appreciation of $44 billion, primarily in fixed income and equity assets.

In the three months ended 31 December 2012, assets under supervision increased by $14 billion to $965 billion, while AuM dropped $2 billion to $854 billion. The firm had total AuM of $856 billion at 30 September 2012, up from $836 billion at the end of June and up from $821 billion in the previous year.

Compensation and benefits expenses (including salaries, discretionary compensation, amortisation of equity awards and other items such as benefits) were $12.94 billion for 2012, 6 per cent higher than 2011.