The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Bank Results Season: The return of Goldman Sachs (Q1 2012)

Compensation battles at Chase that compare unfavorably for retail banking employees as Dimon gets paid 67 times the average bank pay or Lloyd Blankfein’s own titular troubles with non profits and activist investors seem destined to take a back seat at least for the next 3 months as pre market is abuzz with the expected $3.92 EPS of the Empoeror Goldman Sachs and its $0.46 dividend dwarfing others with EPS of $1 , and the fight to get Fed approval for 25 c in dividend.

goldman sachsGS last reported a barebones $1 bln in profit in Q4 as trading income dwindled while it ran up its topline to $9.95 bln and profits to twice that or $2.11 bln returning 12.2% on Common equity on par with the new king of Bonds, JP Morgan. Goldman Sachs reported a Tanglible Common Book Value of $123.94 Even investment Banking revenues seemed on par with that of JP Morgan at a $1.15 bln in topline The drop in wnderwriting Income was matched by increase in Fun Advisory to $489 mln or 37%. FICC was still 20% lower as the bank has shed a fifth of its Wall street / Commodities staff to $3.46 bln out of Client Services income of $5.71 bln

Income from investing & Lending is up to $1.91 bln of which only $169 mln is last week’s announcement of ICBC sale of 60% of its stake leaving it with just over 1% of the bank. Public and Private Equities sale s added an equal profit in the $891 mln income from equities in Investing and lending while Client Trading yielded a topline of $2.25 bln in equities riding the better trading conditions

fund Management yielded another $1.18 bln revenues as Operating expenses for the firm rose to $6.77 bln and Comp expenses back to 44% of the new revenues was 16% lower than the corresponding period in 2011 yet $4.38 bln.
The bank reported Basel I common at 12.% and is likely well tuned to Basel 3 regulations than its competitors at Wells Fargo, JP Morgana nd esp Citi bank, MS and BofA which are teetering on the edge without many investors yet tuned to adding to their investments in larger banks

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