Financial Results

Net Revenues Slide At Goldman Sachs Investment Management

Harriet Davies Editor - Family Wealth Report 19 January 2012

Net Revenues Slide At Goldman Sachs Investment Management

Net revenues at Goldman Sachs’ investment management business dropped 16 per cent year-over-year to $1.26 billion for the fourth quarter.

For the full year, net revenues from investment management were $5.03 billion, which the Wall Street firm said was relatively unchanged from 2010, due primarily to a mix of higher management and other fees and lower incentive fees.

Assets under management decreased by $12 billion to finish the year at $828 billion, reflecting net outflows of $17 billion, partially offset by net market appreciation of $5 billion. Outflows were concentrated in fixed income and equity assets, and were offset by inflows in money market assets.

In Q4, net earnings applicable to common shareholders of Goldman Sachs plummeted 56 per cent compared to the same period in 2010, to $978 million. For the full year net earnings were 67 per cent lower than for the prior year, at $2.5 billion.

Total revenues for Q4 at Goldman Sachs, including all business segments, were $6.05 billion, having fallen by 30 per cent from a year earlier. For the full year, net revenues declined 26 per cent to $28.8 billion.

Meanwhile, total operating expenses fell 14 per cent for the full year and 7 per cent for the fourth quarter, both on a year-over-year basis.

“This past year was dominated by global macro-economic concerns which significantly affected our clients’ risk tolerance and willingness to transact,” said Lloyd Blankfein, chairman and chief executive of Goldman Sachs.


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