Goldman Sachs (GS) reported 4Q earnings on Wed 20 Jan 2016 (before open)

** charts before earnings **

 

** charts after earnings **

 

Goldman Sachs reports Q4 (Dec) results, beats on revs :

• Reports Q4 (Dec) earnings of $4.68 per share, may not be comparable to the Capital IQ Consensus of $3.62; revenues fell 5.5% year/year to $7.27 bln vs the $7.04 bln Capital IQ Consensus.
  • Diluted earnings per common share were $1.27 compared with $4.38 for the fourth quarter of 2014 and $2.90 for the third 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.The $4.68 figure does include CVA/DVA
• Annualized ROE as 3.0% for the fourth quarter of 2015.
• Investment Banking
  • Net revenues in Investment Banking were $1.55 billion for Q4, 7% higher y/y.
  • Net revenues in Financial Advisory were $879 million, 27% higher y/y.
  • Net revenues in Underwriting were $668 million, 11% lower y/y.
• Institutional Client Services
  • Net revenues in Institutional Client Services were $2.88 billion for the fourth quarter of 2015, 9% lower y/y.
  • Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.12 billion for the fourth quarter of 2015, 8% lower y/y.
  • Net revenues in Equities were $1.76 billion for the fourth quarter of 2015, 9% lower y/y.
  • The fair value net loss attributable to the impact of changes in the firm's credit spreads on borrowings was $68 million.
• Investing & Lending
  • Net revenues in Investing & Lendingwere $1.30 billion for the fourth quarter of 2015, 15% lower y/y.
• Investment Management
  • Net revenues in Investment Management were $1.55 billion for the fourth quarter of 2015, essentially unchanged compared with the fourth quarter of 2014 and 9% higher than the third quarter of 2015.
• Noncomp Expenses
  • Non-compensation expenses were $4.14 billion for the fourth quarter of 2015, 64% higher y/y. The increase compared with the fourth quarter of 2014 was due to significantly higher net provisions for mortgage-related litigation and regulatory matters, which are included in other expenses.
  • Net provisions for litigation and regulatory proceedings for the fourth quarter of 2015 were $1.95 billion compared with $161 million for the fourth quarter of 2014 (both primarily comprised of net provisions for mortgage-related matters).
• Book value per common share was $171.03 and tangible book value per common share was $161.64, both 5% higher compared with the end of 2014 and essentially unchanged compared with the end of the third quarter of 2015.