Investment Management Revenues Fall At Goldman Sachs

Tom Burroughes Group Editor 16 April 2019

Investment Management Revenues Fall At Goldman Sachs

The US firm's investment management revenues fell, as did those across the entire group in the first three months of this year.

Goldman Sachs reported investment management net revenues of $1.6 billion in the first quarter of this year, a 12 per cent year-on-year decline, broadly matching the revenue drop for the US group as a whole. Group net revenue fell by 13 per cent, at $8.8 billion, it said yesterday. 

Pre-tax earnings fell by 20 per cent in Q1 to $2.719 billion, the Wall Street firm said. Net earnings, after taxes, were $2.182 billion, also falling by 20 per cent on a year before.

Assets under supervision at the investment management arm stood at $1.599 trillion, a rise of 7 per cent from end-March 2018. There were long-term net asset flows of $20 billion in Q1, 2019, up from $3 billion in the final quarter of last year and also up from $13 billion a year before.

Investment management revenues were $1.6 billion in Q1 2019, falling by 12 per cent year-on-year. Incentive fees ($58 million) fell particularly sharply, down by 73 per cent. Transaction revenues fell by 22 per cent, the firm said. 

Goldman Sachs’ cost-efficiency ratio was 66.6 per cent at the end of the quarter, widening from 64.1 per cent a year earlier. 

The firm’s Common Equity Tier 1 ratio, a standard international measure of a financial firm’s capital buffer, was 13.7 per cent in the first quarter.

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