The Banking and Strategy Initiative

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Bank Earnings Season 2014: Goldman Sachs keeps leadership in Financial Advisory business

The firm made $1.44 Bln in Advisory income in Q4 and placed #1 in M&A with $6.46 Bln Investment Banking revenues including underwriting income for 2014. Institutional Client Trading, pathetic as it was for the industry in Q4, scored $15.2 Bln for 2014, $8.5 Bln in FICC and a little under $6.5 Bln for Equities. Revenues fell 20% in FICC over the December Quarter, but equities made up 15% over the same period, giving the firm $3 Bln from Institutional Clients. The Financial Advisory income was up 25% to $2.5 Bln in a good year for the M&A consultants globally, with an EPS of $17 for 2014 and a good $4.38 in the Fourth quarter

The investing & Lending business was flat at $6 Bln and the Investment Management business shows an up tick in the double digits to $6 Bln for the year including $200 mln in incentive fees on alternative assets this quarter. Buybacks were $1.25 Bln in the quarter (6 mln + shares and $5.5 Bln for 2014)

The comp expenses were a steady 37% for the year. Goldman Sachs was relatively unruffled compared to other Wall Street neighbours this year and legal expenses were leaving non comp lower by 4% for the year and down a sixth for the quarter. Book Value (Tangible) is up 7% to 153, up 1% on September scores.  The earnings call takes place at 0930 hrs ET

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This entry was posted on January 16, 2015 by in Uncategorized.

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