Goldman Sachs' Consumer, Wealth Arm Logs Higher Revenues; Group Earnings Squeezed

Tom Burroughes

16 January 2020

The consumer and wealth management arm of yesterday reported net revenues of $1.408 billion in the fourth quarter of 2019, an 8 per cent year-on-year rise. Across the whole of the US-listed group, it logged net revenues of $9.955 billion, rising by 23 per cent, with asset management and the global markets divisions making strong contributions.

Operating costs, at $7.298 billion in Q4, rose by 42 per cent on the year, at a time when Goldman Sachs has spent significantly. The firm explained that provision for litigation and regulatory proceedings rose. Last year Goldman Sachs bought US wealth management firm United Capital, in a move that sees the group push after a wider clientele than its more traditional higher-end UHNW base. Some cost increases were associated with the United Capital acquisition. Transaction banking and credit card services also added to costs, Goldman Sachs said.

Net earnings fell in Q4 across the group, down by 14 per cent to $2.321 billion, the firm said in a statement.

For the entire firm, it said that assets under supervision rose by $317 billion last year to a record of $1.86 trillion.