Goldman Sachs (GS) Tops Q4 EPS Views; Investment Banking Revs at Near-Record Levels

January 20, 2016 7:36 AM EST

(Updated - January 20, 2016 7:40 AM EST)

Goldman Sachs (NYSE: GS) reported Q4 EPS of $4.78, ex. CVA/DVA and RMBS settlement, versus the analyst estimate of $3.56. Revenue for the quarter came in at $7.27 billion versus the consensus estimate of $7.14 billion.

*** Q4 EPS was $1.27. Goldman noted, "Annualized ROE (2) was 3.0% for the fourth quarter of 2015. During the fourth quarter of 2015, the firm recorded provisions for the settlement with the RMBS Working Group (1) of $1.80 billion ($1.54 billion after-tax), which reduced diluted earnings per common share by $3.41 and annualized ROE by 8.1 percentage points.

Other Highlights:

  • Goldman Sachs ranked first in worldwide announced and completed mergers and acquisitions for the year. During the year, the firm advised on completed transactions valued at more than $1 trillion. The firm also ranked first in worldwide equity and equity-related offerings and common stock offerings for the year. (3)
  • Investment Banking produced net revenues of $7.03 billion, its second highest annual performance, as net revenues in Financial Advisory were the highest since 2007.
  • Investment Management generated record net revenues of $6.21 billion, as assets under supervision (4) increased 6% from a year ago to a record $1.25 trillion, with strong net inflows in long-term assets under supervision of $71 billion (5) during 2015.
  • Book value per common share increased by 5% during the year to $171.03.
  • The firm maintained strong capital ratios and liquidity. As of December 31, 2015, the firm's Common Equity Tier 1 ratio (6) as computed in accordance with the Standardized approach and the Basel III Advanced approach was 13.6% (7) and 12.4% (7), respectively. In addition, the firm's global core liquid assets (4) were $199 billion (7) as of December 31, 2015.

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

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Earnings, Hot Earnings

Related Entities

Goldman Sachs, Earnings