Goldman Beats On EPS, Misses On Revenue

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Goldman reported fourth quarter net revenues of $6.05 billion and EPS of $1.84.Full-year investment banking revenues fell 9% and 43% versus Q4 2010

  • Year-over-year earnings fell from to $4.51 compared to $13.18 in 2010
  • Revenues from the Fixed-Income, Currency and Commodities dropped 34% year-over-year to $9.0 billion.
  • Compensation and benefits for the full year fell 21% to $12.2 billion.
  • Full-year revenues in Investment Management remained essentially flat at $5.03 billion

“This past year was dominated by global macro-economic concerns which significantly affected our clients’ risk tolerance and willingness to transact,” said CEO Lloyd Blankfein in a press release. “While our results declined as a consequence, I am pleased that the firm retained its industry-leading positions across our global client franchise while prudently managing risk, capital and expenses. As economies and markets improve – and we see encouraging signs of this – Goldman Sachs is very well positioned to perform for our clients and our shareholders.”

In the same release, Goldman cited the following ‘annual highlights’:

  • Continuing to rank first in 2011 global announced mergers and acquisitions, equity and equity-related offerings, common stock offerings and initial public offerings for the calendar year
  • Redeeming the Series G Preferred Stock held by Berkshire Hathaway
  • Managing liquidity and capital conservatively (global core excess liquidity of $172 billion as of December 31, 2011, Basel tier 1 capital ratio of 13.8% and basel tier 1 common ratio of 12.1%