The US investment banking giant has managed to generate its highest annual net revenue in 11 years, despite the COVID volatility.
Net revenues came to US$44.5 billion for the full year, a 22 per cent increase from the prior year, reflecting higher contributions from the investment banking, global markets and consumer & wealth management segments.
Net earnings for the year came to US$9.4 billion, 12 per cent higher than the previous year.
The fourth quarter had also resulted in strong results, with net revenues being 18 per cent higher than the prior corresponding period at US$11.7 billion and 9 per cent greater than the third quarter. Net earnings for the quarter were US$4.5 billion, almost half of the year’s earnings.
The global markets division was the greatest money maker, contributing 48 per cent of the company’s revenue (US$21.6 billion). The amount was a 43 per cent surge on the year before and its highest annual net revenue in 10 years, reflecting strong outcomes across fixed income, currency and commodities, and equities.
Investment banking generated US$9.4 billion (24 per cent higher than 2019), while asset management produced US$7.9 billion (11 per cent lower than the year before) and the consumer & wealth management business had $6 billion in net revenue, a 15 per cent rise on 2019.
Net provisions for litigation and regulatory proceedings came to US$3.4 billion, reducing the firm’s diluted earnings per share by US$9.51. Its total EPS for the year of US$24.74 was still higher than 2019’s US$21.03.
Goldman Sachs chief executive and chair David Solomon commented the group had advanced its strategic priorities despite the COVID crisis.
“We hope this year brings much needed stability and a respite from the pandemic, but we remain ready to handle a wide range of outcomes and are poised to meet the needs of our clients,” Mr Solomon said.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].