The Banking and Strategy Initiative

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Bank Results Season: Goldman Sachs' ends tryst with 2008? – $4.51 for 2011 ain't a bad score | Insider Insight

Bottom of Wall Street from FDR

Image by SheepGuardingLlama via Flickr

The firm that has been variously called out as a giant vampire squid, comes close to reporting its lowest annual revenues since 2008’s $22 bln with the expected $28.88 bln revenues. Q4 revenues are almost unchanged from last year at 75% the profit scoring $1.84 bln.

Goldman Sachs has again reported earnings of over $ 4 .51 per share today and 2012 and 2013 earnings can turn up from here in the new regime though FICC trading will still keep falling slightly (13% based on latest Citi analysis)

Earnings for the full year are down after a tumultous Q1 in which the bank also repaid preference dividend, and a loss of 84 cents on Q3. The $4.51 EPS translates to a $2.8 bln profit for the full year , 34.9% of its own 2010 figure of $8.35 bln and less than 15% of the profit reported by no. 2 JP Morgan. Excluding Preferred Dividends the full year profit is $4.50 bln, a shade over half of 2010 profits and twice the profits it reported for 2008 at $2.3 bln

Q4 revenues were below expectations but only a single digit reduction from last year at $ 6.04 bln and profits at a diluted EPS of $1.84 a shoddy $1 bln. The bank improved its liquidity to $172 bln and Tier I Basel 2.5 to 12.1%

Investment Banking revenues were again on par with 2010 performance at $4.36 bln but fell to a 7% market share of deal fees volume in the quarter at $857 mln falling 16% from last December quarter

Institutional Client Services kept falling the cliff, off 3Q by 25% at $ 3 bln and at $17 bln the real reason for the Topline drop for the overall bank at just $17 bln. Equities Income was $8.26 bln maintaining par score, with Fixed Income and Commodities falling 34%

Investing & Lending primarily stayed dull with a $2.14 bln score including the $567 mln loss on ICBC and $1.12 bln in profits from closed PE positions and includes another $1.44 bln from subsidiaries

Funds (Investment management ) stabilised for the quarter and the year at $1.26 bln and $5.03 bln, AUM unchanged effectively at $828 bln

Comp ratio remained static at 42.4% to $12.2 bln. Book value remains near $130 , and tangible BVPS the same at $119 after a buyback of $6 bln during the year

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