Goldman Sachs Group, Inc. (GS) Tops Q4 EPS by $1.82

January 16, 2013 7:36 AM EST Send to a Friend
(Updated - January 16, 2013 7:41 AM EST)

Goldman Sachs Group, Inc. (NYSE: GS) reported Q4 EPS of $5.60, $1.82 better than the analyst estimate of $3.78. Revenue for the quarter came in at $9.24 billion versus the consensus estimate of $7.91 billion. Annualized ROE was 16.5% for the fourth quarter of 2012.

Book value per common share increased approximately 11% to $144.67 and tangible book value per common share increased approximately 12% to $134.06 compared with the end of 2011.

The firm continues to manage its liquidity and capital conservatively. The firm’s global core excess liquidity was $175 billion as of December 31, 2012. In addition, the firm’s Tier 1 capital ratio under Basel 1 was 16.7% and the firm’s Tier 1 common ratio under Basel 1 was 14.5% as of December 31, 2012.

Fourth Quarter Net revenues in Investment Banking were $1.41 billion for the fourth quarter of 2012, 64% higher than the fourth quarter of 2011 and 21% higher than the third quarter of 2012.

Fourth Quarter Net revenues in Institutional Client Services were $4.34 billion for the fourth quarter of 2012, 42% higher than the fourth quarter of 2011 and 4% higher than the third quarter of 2012.

Net revenues in Fixed Income, Currency and Commodities Client Execution were $2.04 billion for the fourth quarter of 2012, 50% higher than the fourth quarter of 2011, reflecting significantly higher net revenues in credit products and mortgages compared with difficult market-making conditions during the fourth quarter of 2011, and higher net revenues in currencies.

Net revenues in Equities were $2.30 billion for the fourth quarter of 2012, 36% higher than the fourth quarter of 2011, reflecting significantly higher net revenues in securities services and equities client execution.

Fourth QuarterNet revenues in Investing & Lending were $1.97 billion for the fourth quarter of 2012.

Fourth QuarterNet revenues in Investment Management were $1.52 billion for the fourth quarter of 2012, 20% higher than the fourth quarter of 2011 and 26% higher than the third quarter of 2012.

Operating expenses were $22.96 billion for 2012, essentially unchanged compared with 2011.

Compensation and benefits expenses (including salaries, discretionary compensation, amortization of equity awards and other items such as benefits) were $12.94 billion for 2012, 6% higher than 2011. The ratio of compensation and benefits to net revenues for 2012 was 37.9% compared with 42.4% for 2011. Total staff (11) decreased 3% compared with the end of 2011.

“While economic conditions remained challenging for much of last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “The firm’s strategic position provides a solid basis on which to grow and generate superior returns.”

For earnings history and earnings-related data on Goldman Sachs Group, Inc. (GS) click here.


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