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

(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.

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