Net Revenues, Earnings Drop Year-On-Year At Goldman Sachs

Eliane Chavagnon Editor Family Wealth Report 23 April 2014


Goldman Sachs reported a rise in net revenues in the first three months of 2014 from the previous quarter, but they fell from a year ago.

Goldman Sachs has reported net revenues of $9.33 billion for the first quarter ended March 31, 2014, up 6 per cent from $8.78 billion at end-December 2013 but down 8 per cent from $10.09 billion a year ago.

Net earnings were $2.03 billion for the first quarter ended March 31, 2014, down 13 per cent from $2.33 billion on the previous quarter and down 10 per cent year-on-year, it said in a statement yesterday.

Diluted earnings per common share were $4.02, compared with $4.29 for the first quarter of 2013 and $4.60 for the fourth quarter of 2013.

“We are generally pleased with our performance for the quarter given the operating environment,” said Lloyd Blankfein, chairman and chief executive.

“Investment banking and investment management generated solid results, while market sentiment shifted throughout the quarter, constraining client activity in various parts of our franchise. Our collection of businesses gives the firm significant room for growth as economic conditions broadly improve and we continue to remain focused on prudently managing our capital and cost structure,” Blankfein added.

Investment management

Net revenues in investment management were $1.57 billion for the first quarter of 2014, 20 per cent higher than the first quarter of 2013 but 2 per cent lower than the fourth quarter of 2013.

“The increase in net revenues compared with the first quarter of 2013 reflected significantly higher incentive fees, as well as higher management and other fees primarily due to higher average assets under supervision,” the firm said.

During the quarter, total assets under supervision increased $41 billion to reach $1.08 trillion, while long-term assets under supervision rose $54 billion, including net inflows of $40 billion - primarily in fixed income assets.

Net market appreciation of $14 billion during the quarter was primarily in fixed income and equity assets. Liquidity products decreased $13 billion.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes