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Goldman Sachs Reports Third Quarter EARNINGS PER COMMON SHARE OF $2.90

The following excerpt is from the company's SEC filing.

NEW YORK, October 15, 2015 The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $6.86 billion and net earnings of $1.43 billion for the third quarter ended September 30, 2015. Diluted earnings per common share were $2.90 compared with $4.57 for the third quarter of 2014 and $1.98 for the second quarter of 2015. Annualized return on average common shareholders equity (ROE)

was 7.0% for the third quarter of 2015 and 8.8% for the first nine months of 2015.

Highlights

Goldman Sachs ranked first in worldwide announced and completed mergers and acquisitions for the year-to-d ate, and also ranked first in worldwide equity and equity-related offerings and common stock offerings for the year-to-date.

Investment Banking produced year-to-date net revenues of $5.48 billion, its highest performance for the first nine months of the year since 2007.

Investment Management generated year-to-date net revenues of $4.65 billion, a record for the first nine months of the year. Assets under supervision

ended the quarter at a record $1.19 trillion, with net inflows in long-term assets under supervision of $41 billion

during the quarter.

Book value per common share and tangible book value per common share

of $171.45 and $162.11, respectively, were both 5% higher compared with the end of 2014.

The firm continues to maintain strong capital ratios and liquidity. As of September 30, 2015, the firms Common Equity Tier 1 ratio

as computed in accordance with both the Standardized approach and the Basel III Advanced approach was 12.4%

and 12.7%

, respectively. In addition, the firms global core liquid assets

were $193 billion

as of September 30, 2015.

We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth, said Lloyd C. Blankfein, Chairman and Chief Executive Officer. We continue to see strong levels of activity in Investment Banking and growth in Investment Management, and looking ahead, are encouraged by the competitive positioning of our global client franchise. Our focus on serving our clients and improving operating leverage puts us in a strong position to generate superior returns for our shareholders.

Media Relations: Jake Siewert 212-902-5400

Investor Relations: Dane E. Holmes 212-902-0300

Net Revenues

Net revenues in Investment Banking were $1.56 billion for the third quarter of 2015, 6% higher than the third quarter of 2014 and 23% lower than a strong second quarter of 2015. Net revenues in Financial Advisory were $809 million, 36% higher than the third quarter of 2014, reflecting a significant increase in industry-wide completed mergers and acquisitions. Net revenues in Underwriting were $747 million, 14% lower than the third quarter of 2014, due to significantly lower net revenues in equity underwriting, reflecting a significant decrease in industry-wide activity. This decrease was partially offset by significantly higher net revenues in debt underwriting, reflecting higher net revenues from investment-grade and leveraged finance activity. The firms investment banking transaction backlog increased compared with both the end of the second quarter of 2015 and the end of 2014.

Institutional Client Services

Net revenues in Institutional Client Services were $3.21 billion for the third quarter of 2015, 15% lower than the third quarter of 2014 and 11% lower than the second quarter of 2015. Results for the third quarter of 2014 included a gain of $270 million related to the extinguishment of certain of the firms junior subordinated debt, of which $157 million was included in Fixed Income, Currency and Commodities Client Execution and $113 million in Equities ($28 million and $85 million included in equities client execution and securities services, respectively).

Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.46 billion for the third quarter of 2015, 33% lower than the third quarter of 2014. Excluding the gain related to the extinguishment of debt, net revenues in Fixed Income, Currency and Commodities Client Execution were 27% lower than the third quarter of 2014, due to significantly lower net revenues in mortgages and, to a lesser extent, currencies and interest rate products. In addition, net revenues in commodities were lower. These decreases were partially offset by higher net revenues in credit products. As compared with the second quarter of 2015, Fixed Income, Currency and Commodities Client Execution operated in an environment characterized by lower levels of client activity and more challenging market-making conditions.

Net revenues in Equities were $1.75 billion for the third quarter of 2015, 9% higher than the third quarter of 2014. Excluding the gain related to the extinguishment of debt, net revenues in Equities were 18% higher than the third quarter of 2014, primarily due to significantly higher net revenues in equities client execution, reflecting significantly higher net revenues in cash products, partially offset by lower net revenues in derivatives. In addition, commissions and fees were higher, reflecting higher volumes in the United States. Excluding the gain related to the extinguishment of debt, securities services net revenues were higher, reflecting the impact of higher average customer balances. As compared with the second quarter of 2015, Equities operated in an environment characterized by a significant decrease in global equity prices and lower client activity levels.

The fair value net gain attributable to the impact of changes in the firms credit spreads on borrowings was $182 million ($147 million and $35 million related to Fixed Income, Currency and Commodities Client Execution and equities client execution, respectively) for the third quarter of 2015, compared with a net gain of $66 million ($37 million and $29 million related to Fixed Income, Currency and Commodities Client Execution and equities client execution, respectively) for the third quarter of 2014.

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Investing & Lending

Net revenues in Investing & Lending

were $670 million for the third quarter of 2015, 60% lower than the third quarter of 2014 and 63% lower than the second quarter of 2015. The decrease in net revenues compared with the third quarter of 2014 was primarily due to a significant decrease in net revenues from investments in equities, as net revenues in public equities were negatively impacted by a significant decrease in global equity prices during the third quarter of 2015. In addition, net revenues in debt securities and loans were significantly lower compared with the third quarter of 2014, reflecting lower net gains from certain...


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