Goldman Sachs reported fourth quarter earnings for 2014 on Monday.
Earnings per share came in at $US4.38 with net revenue coming in at $US7.69 billion.
Analysts expected earnings of $US4.32 per share and revenue of $US7.64 billion for the quarter.
That’s a beat.
It’s even better when you consider the bank’s adjusted earnings per share, which came in at $US4.61.
So far this earnings season the story has been big losses in trading revenue across Wall Street banks, and a continued battering down by legal fees. This has resulted in bank after bank missing expectations.
Goldman Sachs just bucked that dismal trend a little. That isn’t to say that Goldman Sachs did great — it still lagged behind where it was this time last year, especially in fixed income trading which fell 29%.
Total net revenues were $US8.78 billion at this time last year, as opposed to b $US7.69 billion. Goldman’s investment bank revenue fell 16%, but at this point this is a decent looking house in a truly crumby neighbourhood, and we’ll take it.
“We are pleased with our performance during a year characterised by mixed global economic and financial conditions,” said CEO Lloyd C. Blankfein in the bank’s release. “The depth of our global client franchise and our continued discipline on expenses and capital management produced a solid return for our shareholders. Looking ahead, we see evidence of a continued pick up in momentum for the global economy that will improve the opportunity set for 2015.”
A few more numbers you should know:
- Net revenues in stocks were $US1.93 billion for the fourth quarter of 2014, 15% higher than the fourth quarter of 2013. However that number was down 5% for 2013.
- Another bright spot was investment management — up 11% from this time last year.
- The bank took a massive hit on equity underwriting — down 45% from $US622 to $US432 million at the same time last year.