Goldman Sachs Group Inc (GS) CEO Lloyd Blankfein Sees Opportunity; Earnings Beat


goldman sachs

Goldman Sachs Group Inc (NYSE:GS) Chairman and CEO, Lloyd Blankfein, said that the company is looking to take advantage of the improved opportunity available in the current year. The company’s CEO exuded confidence on the back of a momentum witnessed in the worldwide economy.

Commenting on the results, Goldman Sachs Group Inc (NYSE:GS) chairman said that the year 2014 witnessed mixed economic, as well as, financial conditions globally. The company also benefited from its depth of client franchise around the world and the control over the expenses apart from capital management. These factors helped to provide a solid return to its shareholders.

4Q Results

The company reported net earnings of $2.17 billion for the fourth quarter, down 7% from $2.33 billion in the year-ago quarter. Earnings per share also dipped 4.8% to $4.38 from $4.60 in the prior year quarter. Sequentially too, net earnings and EPS witnessed a drop of 3.2% and 4.2% respectively.

Goldman Sachs Group Inc (NYSE:GS)’s net revenues fell 12.4% to $7.69 billion from $8.78 billion in the previous year quarter. Sequentially, the company recorded 8.3% drop in net revenues. The company attributed the lower revenues partly to the industry-wide activity in debt, as well as, equity underwriting, which witnessed 34% fall.

Overall, the company witnessed slackening revenue from different segments. For instance, investment banking delivered 16% drop in revenue while institutional client services recorded 7.6% fall in revenues over the last year quarter. Similarly, the company’s net revenues from its Fixed Income, currency, and commodities segment registered a drop of 29% in revenue. Excluding adjustments, the fall would have been 19%.

Tops Expectations

The company’s results were reflected by 17% fall in non-compensation expenses to $2.52 billion in the fourth quarter. The financial services provider attributed it to drop in net provisions for litigation, as well as, regulatory proceedings besides fall in amortization and depreciation expenses. Net provisions for regulatory proceedings and litigation was only $161 million versus $561 million in the year-ago quarter.

Despite Goldman Sachs Group Inc (NYSE:GS) generating lower revenues and profit for the fourth quarter, both topped the Street analysts’ expectations of $4.32 EPS on revenues of $7.64 billion.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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